London Daily

Focus on the big picture.
Friday, Feb 20, 2026

Elon Musk is now the fourth-richest person in the world. He's about to get even richer

Elon Musk is now the fourth-richest person in the world. He's about to get even richer

Elon Musk is now the fourth-richest person in the world. He's about to get even richer
The Tesla CEO takes no regular salary, but in 2018 shareholders approved a pay package that could eventually give him 20.3 million stock options, paid in 12 equal tranches, potentially making him the richest person in the world. Thanks to the tremendous run-up in Tesla shares, Musk has qualified for two blocks of options, which on paper are worth about $2.8 billion each after he pays the exercise price.

Now he's weeks away from qualifying for the third tranche of options, worth an additional $2.8 billion.

Musk will be awarded the options as the company hits a series of targets both for financial results and market value. One of the two milestones that must be hit for those options to be exercised is that Tesla (TSLA) shares, which were valued at $372 billion at Monday's close, must maintain a $200 billion average market value over the prior six months, a target it hit over the course of the last five months.

So even if Tesla shares lose nearly half their current value over the next month, they'd still have a six-month average of $200 billion or greater.

The other milestone is based upon Tesla's revenue or profit performance. And if analysts' forecasts are right, Tesla should be able to do that in the current quarter.

The measure of profits used to judge success must be $4.5 billion over a 12-month period. The company nearly reached that over the 12 months ending in June, when it earned $4.4 billion. Its third-quarter forecast is for earnings of $1.4 billion, up about a third from what it earned on that basis a year ago.

If he does get the options, Musk won't actually own the shares. He has yet to exercise any of the options he received this year or most of what he was awarded in prior years (He did not not receive any options in 2018 or 2019.) Typically, options are exercised only when the investor holding them is ready to sell the shares, or if they are due to expire.

No matter how many options Musk gets this year, they will be only a fraction of his current Tesla stockholdings.

He owns 34 million shares of the stock, a stake equal to about 18% of the company, which is valued $68 billion.

Musk qualified in May for the first tranche of options under his current pay package. At that time the options were worth about $770 million. He qualified for the second earlier this month when the company's stock price lifted the value of that block of options to $2.1 billion.

As the stock continues to rise, so does the potential value of the options, which is why the two earlier blocks of options are now worth a total of $5.6 billion, while the next block would be worth $2.8 billion, at current prices.

Tesla is about to execute a five-for-one stock split. Although that split will change the total number of shares and options held and outstanding, it won't change the value of Musk's holdings.
Newsletter

Related Articles

0:00
0:00
Close
King Charles III Opens London Fashion Week as Royal Family Faces Fresh Scrutiny
Trump’s Evolving Stance on UK Chagos Islands Deal Draws Renewed Scrutiny
House Democrat Says Former UK Ambassador Unable to Testify in Congressional Epstein Inquiry
No Record of Prince Andrew Arrest in UK as Claims Circulate Online
UK Has Not Granted US Approval to Launch Iran Strikes from RAF Bases, Government Confirms
AI Pricing Pressure Mounts as Chinese Models Undercut US Rivals and Margin Risks Grow
Global Counsel, Advisory Firm Co-Founded by Lord Mandelson, Enters Administration After Client Exodus
London High Court dispute over Ricardo Salinas’s $400mn Elektra share-backed bitcoin loan
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Former Student Files Civil Claim Against UK Authorities After Rape Charges Against Peers Are Dropped
Archer Aviation Chooses Bristol for New UK Engineering Hub to Drive Electric Air Taxi Expansion
UK Sees Surge in Medical Device Testing as Government Pushes Global Competitiveness
UK Competition Watchdog Flags Concerns Over Proposed Getty Images–Shutterstock Merger
Trump Reasserts Opposition to UK Chagos Islands Proposal, Urges Stronger Strategic Alignment
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Liberal Senator Michaelia Cash Accuses Prime Minister of Lying to Australians
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
A Lunar New Year event in Taiwan briefly came to a halt after a temple official standing beside President Lai Ching‑te suddenly vomited, splashing Lai’s clothing
Jillian Michaels reveals Bill Gates’ $55 million investment in mRNA vaccines turned into over $1 billion.
Ex-Prince Andrew Mountbatten-Windsor's arrested
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Four Chagos Islanders Establish Permanent Settlement on Atoll
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
UK Inflation Slows Sharply in January, Strengthening Case for Bank of England Rate Cut
Hide the truth, fake the facts, pretend the opposite, Britain is as usual
France President Macron says Free Speech is Bull Sh!t
Viktor Orbán getting massive praise for keeping Hungary safe, rich and migrant-free!
UK Inflation Falls to Ten-Month Low, Markets Anticipate Interest Rate Cut
UK House Prices Climb 2.4% in December as Market Shows Signs of Stabilisation
BAE Systems Predicts Sustained Expansion as Defence Orders Reach Record High
Pro-Palestine Activists Cleared of Burglary Charges Over Break-In at UK Israeli Arms Facility
Former Reform UK Councillors Form New Local Group Amid Party Fragmentation
Reform UK Pledges to Retain Britain’s Budget Watchdog as It Seeks Broader Economic Credibility
Miliband Defends UK-California Clean Energy Pact After Sharp Criticism by Trump
University of Kentucky to Host 2026 Summer Camps Fair Connecting Families with Local Programmes
UK Police Forces Assess Claims Jeffrey Epstein Used Stansted Airport Flights in Trafficking Network
UK-Focused Equity ETF FLGB Climbs to Fresh 52-Week Peak on Strong Market Sentiment
Trump Warns UK’s Chagos Islands Agreement Is a “Big Mistake” Amid Strategic Security Debate
Trump Urges UK to Retain Sovereignty Over Diego Garcia Amid Strategic Concerns
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
Rupert Lowe wanted to deport rape gangs and the communities who protected them
Reform UK Appoints Former Conservative Minister Robert Jenrick as Finance Chief
UK Unemployment Rises to Highest in Nearly Five Years as Labour Market Weakens
Rupert Lowe Advocates for English-Only Use in the UK
US Successfully Transports Small Nuclear Reactor from California to Utah
South Korea's traditional sand wrestling sport ssireum faces declining interest at home
Japan outlawed Islam
Virginia Giuffre accuses Epstein of trafficking to powerful men for blackmail.
New Mexico lawmakers initiate investigation into Zorro Ranch linked to Jeffrey Epstein
×