Musk’s Net Worth Plummets $10 Billion as Tesla Shares Decline
Tesla shares recently experienced a decline of over 3%, resulting in a significant decrease of $10 billion in CEO Elon Musk’s net worth. This decline is tied to the approval of a controversial compensation plan that could potentially award Musk $1 trillion over the next decade.
Tesla Shareholder Vote and Compensation Plan
On a recent Thursday, more than 75% of Tesla shareholders voted in favor of a payment package for Musk. This deal could award Musk over 423 million additional shares, contingent on achieving specific milestones. These milestones include increasing Tesla’s market capitalization to $8.5 trillion and selling an additional 12 million vehicles within the specified timeframe.
Stock Performance and Investor Response
On Friday, Tesla’s stock fell 3.6%, trading around $429.70. This followed a prior decline of 3.5% the day before the shareholder vote. Matt Britzman, a senior equity analyst at Hargreaves Lansdown, criticized the $1 trillion compensation plan as “outrageous” and labeled the company’s goals as “Everest-sized.” However, he pointed out that Musk would only benefit if substantial value is created.
Russ Mould, an investment director at AJ Bell, noted that there were logical reasons behind the approval of the compensation plan. According to Dan Ives, an analyst at WedBush Securities, most shareholders saw little risk in backing the deal, which positions Musk as a “wartime CEO.”
Opposition and Criticism
Despite the majority approval, some shareholders expressed significant opposition. New York City Comptroller Brad Lander criticized the decision, accusing Tesla’s leadership of creating an indefensible compensation package that puts shareholders at risk.
The Impact on Musk’s Wealth
As of now, Elon Musk retains the title of the world’s richest person, with an estimated net worth of $481.4 billion. This represents a drop of $10 billion due to Tesla’s recent stock decline. Earlier this year, Musk became the first person with a net worth exceeding $500 billion and had briefly surpassed the $400 billion mark as well.
Comparative Wealth Losses Among Billionaires
Musk is not the only billionaire experiencing financial losses. Other notable figures include:
- Larry Ellison: Down $9.1 billion
- Jeff Bezos: Down $2 billion
- Larry Page: Down $5.6 billion
- Sergey Brin: Down $5.2 billion
- Mark Zuckerberg: Down $2.6 billion
The recent fluctuations in stock values highlight the volatile nature of the market and the impact of corporate governance decisions on individual fortunes.
