Elon Musk has become the first person in history to amass a fortune exceeding $700 billion after a Delaware Supreme Court ruling restored a massive Tesla compensation package that had been voided last year.
According to Forbes’ real time billionaires index, Musk’s net worth surged to an estimated $749 billion late Friday, cementing his position as the world’s wealthiest individual by a wide margin.
The decision reinstated Tesla stock options worth about $139 billion, dramatically altering the global wealth landscape and reviving debate over executive compensation, corporate governance and shareholder power.
At the center of the ruling was Musk’s 2018 Tesla pay package, originally valued at $56 billion and later swelling alongside the electric vehicle maker’s share price.
A Delaware Chancery Court judge struck down the deal in 2024, calling it inequitable and citing flaws in how Tesla’s board approved the compensation.
On Friday, the Delaware Supreme Court reversed that decision, stating that the lower court’s ruling had been improper and failed to adequately consider shareholder approval and the contractual framework of the agreement.
The court said voiding the deal unfairly penalized Musk after performance targets had been met.
Tesla did not immediately comment on the ruling. Musk, who also leads SpaceX and owns the social media platform X, posted a brief reaction online, calling the decision “a victory for shareholders.”
Legal experts said the ruling could have lasting implications for how courts review executive compensation packages.
“This decision reinforces the idea that shareholder approved pay agreements carry significant weight,” said Laura Hendricks, a corporate governance professor at Stanford Law School.
“It signals restraint by courts when second guessing outcomes that investors knowingly endorsed.” Others cautioned that the scale of the award remains controversial.
“Even if lawful, the magnitude raises questions about balance between visionary leadership and corporate accountability,” said Mark Feldman, a compensation consultant who advises institutional investors.
The case has become a reference point in discussions around executive incentives tied to ambitious performance goals, particularly in technology driven companies.
With the ruling, Elon Musk $700 billion net worth status places him nearly $500 billion ahead of Google co-founder Larry Page, the world’s second richest person, according to Forbes.
Earlier this week, Musk became the first individual to cross the $600 billion threshold following reports that SpaceX was preparing for a possible initial public offering.
Tesla shareholders added to Musk’s financial momentum in November, approving a separate compensation framework described by the company as a potential $1 trillion pay plan tied to long term growth targets.
It was billed as the largest corporate pay package ever proposed. Market analysts note that much of Musk’s wealth remains tied to volatile assets, including Tesla shares and privately held SpaceX equity, making real time valuations sensitive to market swings.
Some Tesla investors welcomed the clarity provided by the court ruling. “I voted for the pay package because I believed in the vision,” said Daniel Wu, a retail shareholder from San Jose.
“Whether people like the number or not, the goals were clear and they were met.”
Others expressed unease. “As a long term investor, I worry about perception,” said Karen Alvarez, who owns Tesla shares through a retirement fund.
“It puts a spotlight on inequality and corporate priorities.” Employee advocates said the decision could renew internal debate at Tesla about compensation structures.
The restoration of the pay package strengthens Musk’s control and influence at Tesla as the company pushes deeper into artificial intelligence, robotics and autonomous driving.
Analysts said the ruling may also embolden other companies to pursue aggressive, performance based compensation plans.
Regulators and lawmakers are expected to continue scrutinizing executive pay, particularly as wealth concentration reaches historic levels.
Any future legal challenges are likely to focus on process rather than size, experts said. For now, Elon Musk $700 billion net worth milestone stands as a financial landmark, reshaping comparisons at the top of global wealth rankings.
The Delaware Supreme Court’s decision has not only restored a record setting Tesla pay package but has also propelled Elon Musk into uncharted financial territory.
As markets digest the ruling, the case is likely to influence future debates over executive compensation, shareholder rights and the limits of corporate governance, while underscoring the growing scale of wealth tied to the technology sector.
