Elon Musk has reached a historic milestone, becoming the first individual to achieve a net worth of $400 billion, as reported by Bloomberg. This unprecedented feat marks yet another chapter in Musk’s rise as the wealthiest person in the world.
SpaceX Valuation Drives Wealth Surge
A key driver behind Musk’s $20 billion wealth increase was the soaring valuation of SpaceX, his privately held rocket company. SpaceX’s valuation climbed to approximately $350 billion following a deal allowing the company and its investors to purchase up to $1.25 billion in insider shares, Bloomberg noted.
Although SpaceX has not provided a comment, the company is known for its general policy of non-engagement with media inquiries.
Political and Economic Tailwinds Post-2024 Election
Since the 2024 U.S. presidential election, Musk’s fortune has seen a dramatic uptick. His alignment with President-elect Donald Trump has positioned his businesses at the forefront of national economic and technological priorities. Musk’s ventures include Tesla, SpaceX, Neuralink, xAI, and The Boring Company, as well as ownership of the social media platform X. Additionally, he is set to co-lead the newly created “Department of Government Efficiency” (DOGE) alongside Vivek Ramaswamy, a nod to the popular cryptocurrency Dogecoin.
Tesla Stock Hits Record High
Tesla, where Musk serves as CEO and the largest individual shareholder, also contributed significantly to his wealth surge. On Wednesday, Tesla shares closed at an all-time high of $424.77, buoyed by a broader market rally that saw the NASDAQ index surpass 20,000 for the first time. Since Election Day, Tesla’s stock has soared 65%, driven by investor optimism about Musk’s influence on deregulation under the Trump administration, which could benefit the electric vehicle giant.
xAI and Other Ventures Bolster Valuation
Musk’s artificial intelligence startup, xAI, has also seen rapid growth. In November, its valuation more than doubled to $50 billion after a successful funding round, according to the Wall Street Journal. Neuralink, The Boring Company, and other ventures add further layers to Musk’s expanding empire.
Outpacing Fellow Billionaires
The Bloomberg Billionaires Index shows Musk’s wealth has grown by an astonishing $136 billion since November 5. Even before his net worth surged to $400 billion, he had already widened the gap with his closest competitor, Amazon founder Jeff Bezos, by $140 billion as of December 10.
Legal Setbacks and Future Prospects
Despite this meteoric rise, Musk faced a legal hurdle last week when a Delaware court rejected his Tesla shareholder-approved pay package valued at $101 billion. Bloomberg’s wealth calculation, however, still accounts for the package, which is now estimated to be worth $120 billion based on Tesla’s current share value.
With his diverse portfolio and numerous high-growth ventures, Musk’s path to even greater wealth appears inevitable, solidifying his place in financial history.
