Elon Musk’s journey to a $500 billion net worth is the ultimate testament to the power of ownership. It is his substantial equity stakes in the companies he leads—12% of Tesla and 42% of SpaceX—that have translated corporate success into a personal fortune of historic proportions.
Without this significant ownership, even the wild success of his companies would not have made him the world’s wealthiest person. Many founders and CEOs see their stakes diluted over time through funding rounds and stock grants. Musk, however, has maintained a commanding ownership position, ensuring he is the primary beneficiary of the value he creates.
This was clearly demonstrated this week. When Tesla’s valuation soared past $1.5 trillion on the back of a stock rally, it was his 12% slice of that massive pie that pushed his net worth over the top. The 13% gain for the company was a 13% gain for his largest asset.
His large stake also grants him a level of control that is rare in modern corporations. It allows him to pursue long-term, high-risk projects that a board with more diffuse ownership might reject. This control is a key part of his formula for innovation.
The proposed $1 trillion compensation plan for Musk at Tesla is, at its core, a negotiation about ownership. It is designed to increase his stake further, tying the company’s future success even more tightly to his own. His current half-trillion-dollar status is proof that in the world of modern business, ownership is the key to the kingdom.