Elon Musk Owns 20% of Tesla, a Stake Worth Roughly $200 Billion. Here's Why His Ownership Level Matters for Shareholders.
Elon Musk is a polarizing figure, and buying Tesla means you are deferring to his management decisions.
Overview
At the end of 2025, Elon Musk owned roughly 20% of Tesla's (NASDAQ: TSLA) shares, inclusive of the over 300,000,000 options he recently exercised. That's a huge stake, but for comparison, the giant asset manager Vanguard was the second-largest holder with a 6.1% stake in the company. Musk's massive ownership position changes the game for investors.
Wall Street likes to see CEO's with skin in the game. It means their interested are aligned with the interested of shareholders. However, in a situation like electric vehicle maker Tesla, where CEO Elon Musk controls a huge 20% of the company's voting power, insider ownership takes a different form. At this level, the CEO's interest may supersede those of the shareholders because the CEO's voting power is so influential.
Image source: The White House.
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Originally published at www.fool.com.