Elon Musk Wins $1 Trillion Pay Package: Inside the Entrepreneur’s Fortune, Lifestyle and Rise to the Top

A day after receiving a record $1 trillion pay package, Elon Musk’s net worth fell by about $11.7 billion on Bloomberg’s Billionaires Index, as Tesla shares slipped 3.54% in early trading on Nasdaq on Friday. The decline, however, is only a minor dip for the world’s richest man, who derives most of his fortune from his roughly 13% stake in Tesla and his $350 billion rocket company, SpaceX.

Bloomberg’s list, which values the Tesla CEO based on his various assets and liabilities, puts his current net worth at $461 billion as of November 10 — close to his previous peak of $486 billion, achieved in December 2024. That surge was driven by a rally in Tesla shares following Musk’s endorsement of Donald Trump’s election as US President.

What followed, however, was a turbulent period for the billionaire. He faced strong backlash over his work with the Trump Administration’s Department of Government Efficiency (DOGE). By April 8, his net worth had nearly halved to $290 billion as Tesla’s sales and stock price fell sharply, plunging to $221.86. Both have since rebounded, with Tesla shares now trading near $446. Some analysts predict the stock could climb to $600 within the next 12 months.

“We have always viewed Musk and Tesla as a leading global disruptive technology player, and the first part of this grand strategic vision has taken shape over the past five years. Now it’s about driving the most important chapter in Tesla’s history — an autonomous future ahead. We continue to believe Tesla could reach a $2 trillion market cap by early 2026 in a bull-case scenario, and $3 trillion by the end of 2026 as full-scale production begins on the autonomous and robotics roadmap,” wrote Wedbush Securities analysts led by Daniel Ives in a note dated November 6, following Tesla’s annual shareholders’ meeting.

The meeting, held in Austin, Texas, approved Musk’s record-breaking pay package, a replacement for his 2018 compensation plan that was struck down by a Delaware court — and authorised Tesla to invest in Musk’s artificial intelligence startup, xAI.

Before we discuss Musk’s massive compensation, let’s understand where his current $486 billion net worth comes from.

What Elon Musk Owns?

Elon Musk’s largest public holding is his roughly 13% stake in Tesla, which remains the biggest single asset in the Bloomberg Billionaires Index. His largest private asset however is SpaceX, which Bloomberg values at nearly $350 billion based on a December 2024 tender offer. Musk owns approximately 42% of the company.

Bloomberg treats xAI and X (following their merger) as a combined holding valued by investors at around $105 billion. In its calculations, Bloomberg applies liquidity and share-count adjustments, estimating Musk’s stake at roughly 33%.

Smaller private holdings are valued using data from funding rounds and PitchBook. Bloomberg reported in 2025 that Neuralink was being discussed at valuations in the single-digit billions, citing an $8.5 billion fundraising figure from April and subsequent PitchBook-based updates around $9 billion. The Boring Company was last widely valued at about $5.7 billion, based on its Series C round.

Bloomberg’s profile also notes that Musk has $23.2 billion in liabilities. These liabilities and pledged shares, including about $3.5 billion in loans backed by Tesla share pledges, are deducted when calculating Musk’s total net worth. The index also applies discounts for the limited liquidity of private companies and other adjustments, meaning the dollar figures are estimates that fluctuate with new filings, tender offers, and market movements.

To reach this point, the South Africa–born tech entrepreneur has been through a long and remarkable journey.

From Private Jet to Luxury Cars: Elon Musk’s Costliest Purchases

Elon Musk’s most expensive personal purchases span private jets, luxury estates, rare cars and a few standout watches, though in recent years he has famously claimed to have sold most of his material possessions.

Among his costliest assets is a Gulfstream G700 private jet, estimated at around $78 million. The aircraft, registered to Musk’s aviation entity, features five living areas, two restrooms and twenty oval windows. According to GQ India and Mint, it represents one of the most extravagant personal items owned by the Tesla and SpaceX chief.

Before his decision to offload much of his real estate, Musk owned multiple luxurious homes. One of the most notable was his 16,000-square-foot estate in Hillsborough, California, which he purchased in 2017 for about $23.4 million and later listed for roughly $30 million. Another famous property was his Bel-Air colonial mansion in Los Angeles, bought in 2012 for $17 million and sold in 2020 for close to $29.7 million, as reported by DMARGE and Realty Today.

Collectively, Musk’s seven-home portfolio once exceeded $100 million in value, all of which he sold as part of his “own no house” pledge, according to Nine.com.au.

Musk once purchased a McLaren F1, one of the most desired supercars in history, with a price tag exceeding $1 million at the time. He famously said he chose the car over buying a house early in his career. Another iconic addition to his collection was the Lotus Esprit “Wet Nellie”, the modified submarine car from the James Bond film The Spy Who Loved Me, which he bought for nearly $920,000 in 2013, as reported by SlashGear and Yahoo Autos.

Musk Family Individual Net worth

Maye Musk, Elon’s mother, is a longtime model, dietitian and author who built an independent career. Public net-worth estimates vary, news reports have reported figures ranging into the low-tens of millions up to roughly $45M). Errol Musk, his father, is a South African engineer/businessman described in biographies as having owned property and businesses (and reportedly once having a mine stake). Reliable audited net-worth figures aren’t available and online reports offer only informal low-million estimates.

Kimbal Musk (brother) is an entrepreneur and restaurateur. Forbes has estimated his net worth at about $900M, largely from early Zip2 proceeds, roles at Tesla/SpaceX and his own ventures. Tosca Musk (sister) is a film producer/director and CEO of Passionflix; public estimates for her net worth are inconsistent and range from low-to-mid tens of millions in some reports.

Elon’s former spouses and partners (Justine Wilson, Talulah Riley, Grimes) and high-profile partner Shivon Zilis are public figures with widely varying, generally non-billionaire net-worth estimates reported by entertainment and consumer sites. For instance, Justine often reported in the multi-millions, Talulah commonly in the single-digit millions, Grimes often placed in the low millions. Shivon’s net worth reports focus on her tech career rather than any agreed net-worth number.

The children are part of a large blended family (reports through 2024–2025 list about 13–14 known children from multiple mothers). They are minors/dependents and have no public net-worth estimates. Reporting about them centers on family timelines rather than personal wealth.

Elon Musk's Rags-to-Riches Story

Born in June 1971 in Pretoria, South Africa, Elon Musk left his home at the age of 17 to attend college in Canada. Reports suggest the move was partly to avoid being drafted into the apartheid-era South African army. He graduated from the University of Pennsylvania and later enrolled at Stanford University, though he dropped out to pursue his interests in the internet, clean energy, and space.

Musk launched his first venture, Zip2, in 1995 and sold it for over $300 million four years later. He used the proceeds to found X.com, which later merged into PayPal and was sold to eBay for $1.5 billion in 2002. He used the proceeds from this sale to establish SpaceX and acquire a stake in the then-struggling electric car company Tesla.

SpaceX was later chosen by NASA to re-supply the International Space Station (ISS). To date, it remains the only US company capable of transporting astronauts to and from the ISS.

Meanwhile, Tesla, which released its first all-electric sports car in 2010, has become the world’s largest automaker with a market capitalisation of about $1.4 trillion. Musk also founded SolarCity, a solar power provider that went public in 2012 and was later acquired by Tesla in 2016.

How Musk Could Earn $1 Trillion

The $1 trillion pay package awarded on Thursday will not be directly credited to Elon Musk’s account. He must meet several performance milestones for it to vest. The award consists of up to 423,743,904 shares of restricted common stock in Tesla, divided into 12 tranches of 35,311,992 shares each (about 1% of Tesla’s adjusted share count per tranche).

To receive the full compensation, Musk must drive Tesla to a market capitalisation of $8.5 trillion, achieved in stages starting from $2 trillion, which would unlock roughly $8.2 billion worth of stock.

In addition to market milestones, Tesla must reach operational goals such as generating adjusted EBITDA of $400 billion, and product-related milestones including 20 million vehicle sales, 1 million robotaxis, 1 million AI bot deliveries, and 10 million active subscriptions to its Full Self-Driving (FSD) software.

Musk has between 7.5 to 10 years to achieve these targets for all tranches to vest fully.

If fully vested, Musk’s stake in Tesla could rise significantly. Tesla’s proxy statement estimates his ownership could reach 24.8% of adjusted share count, or up to 28.8% including the 2018 award (assuming no dilution). According to Tesla’s last annual report, Musk currently owns about 15% of the company.

If achieved, the package would make Elon Musk the world’s highest-paid CEO and the first trillionaire. Tesla stated, “Incentivising Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history.”

However, not everyone is impressed. In a column for Yale Insights, Jeffrey A. Sonnenfeld, Senior Associate Dean for Leadership Studies, described the proposed scheme as “ludicrous not only in terms of the highly aspirational 12 milestones that would unlock the benefits, but also in terms of good governance practice.”

Despite this criticism, 75% of Tesla’s shareholders approved the proposal, with notable exceptions such as Norway’s sovereign wealth fund and proxy advisory firms Glass Lewis and ISS voting against it.

Musk’s 2018 Package and Legal Challenge

This isn’t the first time Musk’s compensation has sparked controversy. His 2018 pay package, valued at up to $56 billion, was described by a US judge in 2024 as “an unfathomable sum.” It was a 10-year performance-based stock option plan, with milestones including Tesla reaching market capitalisation targets from $100 billion to $650 billion, alongside revenue and profit goals.

Shortly after the package was approved, Richard Tornetta, a Tesla shareholder and former heavy metal drummer from Pennsylvania, filed a lawsuit in Delaware’s Court of Chancery. In January 2024, the court voided the 2018 package, ruling that the approval process was flawed.

The decision angered Musk, leading him to move Tesla’s incorporation from Delaware to Austin, Texas. In 2024, Tesla’s board asked shareholders to re-approve the plan, arguing that Musk “has not been paid for any of his work for Tesla for the past six years that has helped generate significant growth and shareholder value.”

Elon Musk’s $1 trillion pay package is not a guaranteed payout but a performance-based compensation plan tied to Tesla’s long-term growth targets. The package, structured around stock options, becomes accessible only if Tesla meets specific milestones related to market capitalization, revenue, and profitability. Essentially, Musk can unlock portions of the award only when Tesla achieves certain financial and operational goals, ensuring that his personal earnings rise in tandem with the company’s sustained success.