By Our Reporter
Elon Musk has reached a financial milestone no one has achieved before. His net worth briefly crossed $500.1 billion on Wednesday afternoon, according to Forbes’ billionaires index.
Although the figure slipped slightly to just over $499 billion by the end of the day, the tech mogul became the first person in history to hit the half-trillion mark.
The surge in wealth reflects rising valuations of his multiple ventures. Tesla has led the charge, but his artificial intelligence company xAI and space exploration firm SpaceX have also grown in value this year.
The increase has cemented Musk’s lead as the world’s richest person, far ahead of rivals in the global tech industry.
The closest competitor to the xAI founder’s wealth is Oracle founder Larry Ellison, who sits in second place with a net worth of $350.7 billion.
Ellison briefly overtook him last month after Oracle’s stock jumped more than 40%. Investors responded positively to the company’s strong outlook for cloud computing and artificial intelligence services.
Despite Ellison’s rise, Musk quickly reclaimed the top spot as Tesla shares surged again. His fortune remains heavily tied to his stake of more than 12% in Tesla.
A strong stock performance in 2024 has been critical. Tesla shares closed 3.3% higher on Wednesday, bringing their yearly gain to more than 20%.
Tesla has faced headwinds, from slowing car sales to stiff competition with Chinese EV giant BYD. The company has also been dealing with profit margin pressures, which made it one of the weaker performers among the “Magnificent Seven” group of top tech stocks.
Still, optimism has grown as the tech billionaire shifted more of his attention back to the company after months of political involvement in Washington.
Earlier this year, he faced criticism for his work with the Trump administration’s Department of Government Efficiency (DOGE), a body created to cut spending and reduce jobs. His outspoken opinions on immigration and diversity programs also sparked controversy.
Tesla’s board chair, Robyn Denholm, highlighted in September that Musk was again “front and centre” at the automaker. Investors have responded positively, seeing his focus as key to Tesla’s future.
Shortly after, the tech magnate revealed he had purchased about $1 billion worth of Tesla shares, which many interpreted as a strong vote of confidence.
Tesla is now transitioning beyond car manufacturing. The company aims to establish itself as a leader in artificial intelligence and robotics. Plans include building and selling AI-powered robots and scaling up vehicle production to ambitious levels.
The electric car mogul’s potential compensation package reflects these big goals. The Tesla board has proposed a plan that could be worth more than $1 trillion if he meets several tough targets. To unlock it, he would need to multiply Tesla’s valuation by eight, sell a million AI robots, and deliver 12 million cars, among other requirements.
Beyond Tesla, his other ventures are scaling rapidly. xAI, which was valued at $75 billion in July, could soon reach $200 billion according to market speculation. Musk denied reports of a capital raise, but interest in the company is high.
Meanwhile, SpaceX has been valued at around $400 billion in recent insider share sales, making it one of the most valuable private firms in the world.
These successes across industries have helped Musk achieve a financial milestone that seemed unreachable just a few years ago. As Tesla pushes deeper into AI and robotics, and as SpaceX expands its role in space exploration, his position at the top of the global wealth rankings appears secure for now.
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