Elon Musk has become the first individual to achieve a net worth of $400 billion, according to Bloomberg, marking an unprecedented milestone in global wealth. The surge in Musk’s fortune follows a deal that increased SpaceX’s valuation to approximately $350 billion. SpaceX and its investors agreed to purchase up to $1.25 billion in insider shares, significantly boosting Musk’s personal wealth by nearly $20 billion.
Musk’s fortune has experienced extraordinary growth since the 2024 U.S. presidential election, fueled in part by his alliance with President-elect Donald Trump. This partnership has elevated Musk’s ventures, including Tesla, SpaceX, Neuralink, xAI, and the Boring Company, to new prominence. Notably, Musk and entrepreneur Vivek Ramaswamy are set to oversee the newly established “Department of Government Efficiency” (DOGE), humorously named after the popular cryptocurrency.
Tesla and Market Momentum
Tesla’s stock hit a record high of $424.77 per share on Wednesday, propelled by broader market gains, including the NASDAQ crossing the 20,000 mark for the first time. Tesla’s 65% rally since Election Day reflects investor optimism about Musk’s potential influence in the Trump administration, which is expected to introduce deregulation favorable to the electric vehicle industry. Musk, Tesla’s largest individual shareholder, continues to benefit from the automaker’s soaring stock value.
Musk’s AI startup, xAI, has also seen its valuation more than double in recent months, rising to $50 billion during a November funding round. This adds to the $136 billion increase in Musk’s wealth since November 5, according to Bloomberg’s Billionaires Index.
A Widening Wealth Gap
Musk now stands $140 billion ahead of the world’s second-richest person, Amazon founder Jeff Bezos. His dominance atop the billionaire rankings has only grown, even as competition among the wealthiest fluctuates. Before crossing the $400 billion mark, Musk’s wealth already significantly outpaced that of his peers.
Legal and Financial Outlook
Despite his success, Musk recently faced a setback when a Delaware court rejected his record-breaking $101 billion Tesla compensation package. However, Bloomberg’s calculations still appear to account for the package, now valued at $120 billion based on Tesla’s current share price.
With his sprawling portfolio of ventures and the potential for further growth across industries, Musk remains positioned to expand his wealth even more in the years ahead.
