A move reminiscent of the time Rick Sanchez erased the entire Galactic economy recently made Elon Musk $56 billion poorer – or rather, less wealthy – with a single stroke of a pen.
On January 30, 2024, a Delaware judge – Chancellor Kathaleen McCormick – ruled that Musk’s immense pay package for his role at the world’s most recognizable electric vehicle (EV) maker, Tesla Motors (NASDAQ: TSLA), was unfair to shareholders and had to be rescinded.
The decision not only toppled the billionaire from his top spot on the list of the world’s most wealthy and helped reduce his net worth to approximately $198.9 billion – $19 billion less than France’s Bernard Arnault – but also kickstarted a large move of his corporate entities from Delaware to Texas.
Picks for you
Still, while Musk may have lost his generous pay package, he retains significant wealth, and much of it is accounted for by a significant number of Tesla shares he holds.
How many Tesla shares does Musk hold in 2024?
The latest filings with the U.S. Securities and Exchange Commission (SEC), published on February 14, 2024, reveal that Elon Musk currently holds slightly more than 715 million TSLA shares – in other terms, his ownership stake in the company amounts to approximately 20.5%.
Indeed, the numbers show that much of the billionaire’s current wealth is tied to the fortunes of the company, as his TSLA shares are, at press time, worth just under $135 billion – about 67% of his net worth.
Musk’s ranking on the list of the world’s richest people didn’t suffer solely due to the cancellation of his pay package. Tesla has seen a major stock market decline in recent months as the entire EV industry has been gripped in what has been termed the ‘EV winter’ – a period of heightened competition and dwindling demand.
The company’s stock declined 11.92% in the last 52 weeks and 24.04% since January 1. Tesla also continued the downtrend in the last 30 days – it is 14.19% in the red in the timeframe – but the last full trading session was positive, and the firm’s shares closed on Wednesday 2.55% in the green at $188.71.
How will Tesla impact Musk’s wealth in 2024?
Finally, Musk’s Tesla-tied wealth is forecast to increase in the coming 12 months as, on average, the price target for the company’s shares stands at $220.26 – 16.72% above the current price.
While such an increase would bring the billionaire to parity with Arnault, he could comfortably reclaim his top spot should the highest forecast for TSLA stock – $345 per share – come to fruition.
On the other hand, should the forecast of the most bearish analyst come true, Musk’s wealth would – if all else remains the same – dwindle to just $80 billion, with TSLA accounting for a mere $16 billion at $23.53 per share.
Not just Tesla
While Rome’s richest man might have derived his wealth from gold mines alone, Elon Musk’s holdings are diversified and span multiple successful businesses. Indeed, he is known for his many companies, each focused on cutting-edge technology and has made at least $114.80 per second from all of them combined throughout 2023.
Still, Musk’s other major holdings – his significant stakes in Starlink, SpaceX, the Boring Company, Neuralink, as well as the recently-acquired X and the recently-created xAI – are harder to quantify than Tesla given that they are still all private companies.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
