Headline: Elon Musk Exercises Tesla (TSLA) Compensation Package Worth $116 Billion, Secures 19.9% Stake

Elon Musk formally exercised his 2018 Tesla (TSLA) compensation package on June 16, acquiring approximately 286 million shares. This action resolves a six-year dispute over the executive pay plan and significantly increases his stake in the electric vehicle maker. Musk exercised 304 million stock options at an adjusted price of $23.34 per share. With Tesla's closing price at $404.66 per share on the exercise date, the transaction yielded a paper gain of approximately $116 billion. Following a net settlement, Tesla withheld about 17.53 million shares, valued at $7.1 billion, for tax obligations, leaving Musk with 286 million net shares. These shares are restricted and cannot be sold until 2028. The 2018 compensation plan faced legal challenges, initially revoked by a Delaware Chancery Court in 2024 but ultimately upheld by the Delaware Supreme Court in December 2025. Post-exercise, Musk's total holdings in Tesla common stock amount to approximately 700 million shares, representing a 19.9% ownership stake. This move also contributed to his net worth exceeding $1 trillion as of June 20.