Key Points
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.
Insider ownership is good, but too much can be a problem
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.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: The White House.
This isn’t the only company over which Elon Musk has such sway. He also has 82% voting control at Space Exploration Corporation (NASDAQ: SPCX). The space-focused company only recently held its initial public offering, but already has a massive $1.5 trillion market cap (making it larger than Tesla). The company’s prospectus was very clear about what Musk’s voting control meant: “As a result, Mr. Musk will be able to control the outcome of matters requiring shareholder approval.” While he doesn’t have the same level of voting control at Tesla, Musk’s 20% stake is so large that it would be hard for shareholders to meaningfully oppose him. Even the board of directors, which is supposed to represent shareholders, would likely struggle to oppose a CEO with such a large investment in the company they run.
You are investing alongside Elon Musk
When you step back, you can argue that Elon Musk having so much influence over Tesla and SpaceX is both good and bad. He is clearly a visionary businessman, but he’s also known for making provocative statements and non-business choices that sometimes have real-world economic impacts on shareholders. For example, his involvement with U.S. politics in 2025 led some to boycott Tesla. The company’s deliveries declined materially that year.
Notably, your view of his control should probably be an integral part of your investment decision if you are considering buying the stock. You are, effectively, investing alongside Musk. What he wants to do is likely to happen, with little the board or investors can do to get in the way. If that isn’t OK with you, you shouldn’t buy Tesla or SpaceX stock.
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*Stock Advisor returns as of August 8, 2026.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
