This share buyback proposal has become relevant against the backdrop of SpaceX's plans to conduct an IPO in 2026, which, according to investors, could lead to the company's value rising to $1.5 trillion.
As of today, Musk's stake in SpaceX, valued at $336 billion, is his most valuable asset. At the same time, his 12% stake in Tesla is worth $197 billion, not including the options granted under the CEO Performance Award program, which was approved in 2018.
However, in January 2024, a court in Delaware ruled this program invalid. If Tesla loses the appeal, the company may offer Musk another way to acquire a large block of shares. In November, the company's shareholders approved a record compensation plan that could yield Musk up to $1 trillion in additional shares if Tesla significantly increases its market capitalization over the next ten years.
Additionally, Musk is the owner of xAI Holdings, which reportedly is in talks to raise investments at a valuation of around $230 billion.
Musk has also become known for his provocative statements. One of his latest was a call for the dissolution of the European Union, made after the European Commission imposed a €120 million fine on his platform X.
