Musk Exercises Stock Options Worth $114B, Now Owns More of Tesla

Elon Musk has exercised a substantial portion of his Tesla stock options, closing a major chapter in his CEO compensation arrangements and lifting his overall ownership in the company.

Inside the SEC Filing

Per a new SEC filing, Musk exercised 304 million stock options. Tesla watcher @SawyerMerritt outlined on X that Tesla previously withheld 17.53 million shares at an average price of $404.66 per share to cover the strike price and taxes on the options. Because the transaction was net settled, it did not include any open-market sales of Tesla stock.

This was not a share sale. Musk’s total holdings increased, taking his ownership to roughly 19.9%. The newly issued shares are restricted and do not vest until January 19, 2028. After vesting, a 5-year lockup begins, so he cannot sell them until early 2033. Those restricted shares are currently valued at about $114 billion.

A Storied Compensation Package

The options represent the entirety of his 2018 CEO compensation plan. The award spent years in Delaware courts after a lower court rescinded it, but Musk won his appeal late last year. The state’s highest court reversed the earlier decision, calling it “improper and inequitable” because it left Musk uncompensated for six years of his time and efforts meeting aggressive milestones.

During the legal back-and-forth, Tesla’s board approved a $29 billion interim award to bridge the gap, but that backup package was forfeited once the 2018 plan cleared the courts. Separately, shareholders approved an unprecedented trillion-dollar pay package for Musk last year, contingent on ambitious future financial and operational goals for Tesla.

Pushing Voting Rights Higher

Musk technically had until early 2028 to exercise these options, so acting now appears aimed at shoring up additional voting power immediately. Bringing his stake close to 20% gives him a stronger hand in shaping upcoming products at a pivotal moment as Tesla transitions from just another automaker to an AI and robotics powerhouse.

The additional equity further boosts his personal wealth. His net worth recently surged when the blockbuster SpaceX IPO exploded past TSMC and even Tesla, cementing him as the first trillionaire in history. With the newly settled shares locked until 2033, his financial position and voting influence over Tesla’s future look more secure than before.