Elon Musk has become the first person to exceed $500 billion in net worth, driven by a resurgence in Tesla’s share price this year and increasing valuations of his other technology ventures. The milestone comes less than a year after Musk’s net worth surpassed $400 billion, solidifying his position as the world’s wealthiest individual. Musk’s fortune briefly touched $500 billion on Wednesday before settling at $499.1 billion, according to Forbes’ billionaires index. Tesla is the world’s most valuable automaker. The electric-vehicle maker’s stock has climbed approximately 14% since the start of the year after a volatile beginning.
Musk’s wealth is closely linked to his approximate 12% stake in Tesla. Last month, Musk disclosed his purchase of around $1 billion worth of Tesla shares. This move was perceived as a sign of confidence as the company aims to transition from an automaker into an AI and robotics powerhouse. The carmaker’s board proposed a $1 trillion compensation plan for Musk, outlining ambitious financial and operational goals. This plan also addresses his demands for a larger stake in the company.
The proposed compensation package is the largest ever offered to a corporate executive, and investors anticipate that it will further enhance Musk’s focus on Tesla. Since the package was disclosed on September 5, the stock has increased by 35.7%. Over the years, Musk’s ventures have given him significant influence across various technology sectors, including electric vehicles, clean energy, satellite communications, and artificial intelligence.
Musk’s AI startup, xAI, and his rocket company, SpaceX, have also seen their valuations increase this year. They are reportedly raising funds at valuations of $200 billion and $400 billion, respectively. Oracle founder Larry Ellison trails Musk as the second-richest person on Forbes’ list, with a net worth of around $350.7 billion as of Wednesday.
