Elon Musk has become the first individual in recorded history to attain a net worth of $500 billion, according to the latest Forbes billionaire index. His estimated fortune stood at $499.5 billion as of October 1, driven by sharp gains in Tesla shares and upward revaluations of his other ventures.

Tesla's stock climbed nearly 4 per cent on that day, contributing over $7 billion to Musk's wealth, and has risen more than 14 per cent year-to-date. The new milestone follows a proposal by Tesla's board to award Musk a ten-year compensation package worth up to $1 trillion, contingent on meeting highly ambitious growth targets.

Musk's wealth stems largely from his holdings in Tesla, SpaceX, and his AI initiatives. He holds more than 12 per cent of Tesla, a stake currently valued around $191 billion, and owns roughly 42 per cent of SpaceX, with that portion estimated at about $168 billion. Meanwhile, his AI firm xAI is also benefiting from rising valuations.

Tesla's compensation proposal requires Musk to stay in his C-suite role for two years and hold the shares for five years after purchase to fully claim them. The board described the award as a“good faith gesture” while it negotiates a longer-term plan. Under the plan, if Musk succeeds in increasing Tesla's valuation from around $1 trillion to $8.5 trillion over a decade - by accelerating robotaxi deployment, AI integration, autonomous systems, and humanoid robotics - he could receive over 300 million additional shares.

Analysts have described the package as a signal of Tesla's reliance on Musk's leadership and vision. A finance professor noted that such high stakes might be intended to realign Musk's focus on core business objectives, warning that his attention can stray into politically charged ventures at times.

Still, the proposal faces scrutiny: a court previously invalidated Musk's 2018 $56 billion pay deal. Questions have been raised over whether such expansive incentives promote governance risks or encourage overambition. The board's interim share award, by contrast, is modest by comparison - worth around $29–30 billion and comprising 96 million shares priced at $23.34 each.

Compounding the debate are Musk's broader distractions: he has publicly engaged in political commentary, launched the Department of Government Efficiency initiative, and heavily involved himself in national policy discourse - moves contested by critics as blurring the line between corporate leadership and political activism.

On the market front, Tesla faces headwinds: vehicle sales have shown signs of softness in certain regions, and competition from Chinese EV makers is intensifying. Analysts caution that delivering on the lofty targets in the compensation plan - such as deploying one million robotaxis - will demand drastic innovation, capital investment and execution at scale.

Meanwhile, Musk continues to wield influence across sectors. SpaceX has expanded its commercial launch and satellite networks, while xAI and his other ventures signal deeper bets on AI and infrastructure. Some observers view this combined portfolio as essential to justifying the pay package, arguing that his success in one domain could unlock value in the others.

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