Elon Musk, born in South Africa, has officially become the world’s first individual to surpass a net worth of $400 billion.
According to Bloomberg, this unprecedented achievement comes as Musk’s wealth saw a nearly $20 billion increase, largely fueled by a recent deal that boosted the valuation of his rocket company, SpaceX, to around $350 billion.
SpaceX Deal Sparks Major Wealth Surge
The key to this surge in Musk’s wealth was a significant deal involving SpaceX, where the company and its investors agreed to purchase up to $1.25 billion in insider shares.
This agreement led to a sharp rise in the company’s valuation, contributing to Musk’s already astronomical net worth.
Although SpaceX has not responded to media inquiries regarding the deal, it’s clear that the company’s growth is a driving factor behind Musk’s wealth.
Musk’s Wealth Surge After the 2024 U.S. Presidential Election
Following the 2024 U.S. presidential election, Elon Musk has seen a substantial increase in his personal fortune.
His alliance with President-elect Donald Trump has propelled his various ventures into the spotlight.
Musk, who serves as the CEO of Tesla, SpaceX, and other companies, including Neuralink, xAI, and the Boring Company, has expanded his influence even further.
Notably, Musk and Vivek Ramaswamy are set to oversee a newly created “Department of Government Efficiency” (DOGE), humorously named after the popular memecoin.
Tesla’s Stock and Market Growth
Musk’s wealth also benefits from the performance of Tesla, where he holds the largest individual stake.
Tesla’s stock closed at an all-time high on Wednesday, reaching $424.77 per share, further bolstering Musk’s financial standing.
Tesla’s remarkable growth is attributed to a combination of factors, including broader market trends and investor optimism surrounding Musk’s potential influence in the upcoming Trump administration.
Since Election Day, Tesla’s stock has surged by roughly 65%, with investors hoping that Musk’s connections will lead to deregulation policies that could benefit the electric vehicle (EV) giant.
xAI and Other Ventures Boost Musk’s Wealth
Musk’s artificial intelligence startup, xAI, has also contributed significantly to his wealth.
The company’s valuation soared to $50 billion in November following a new round of funding, according to the Wall Street Journal. This rapid growth in multiple sectors is driving Musk’s wealth even higher.
As of December 10, Musk’s net worth had increased by approximately $136 billion since November 5, solidifying his position as the world’s wealthiest individual.
Prior to reaching $400 billion, Musk was already ahead of Amazon founder Jeff Bezos by $140 billion, as per Bloomberg’s Billionaires Index.
Musk’s Pay Package and Future Wealth Prospects
While Musk’s record-breaking Tesla shareholder-approved pay package worth $101 billion was recently rejected by a Delaware court, his wealth continues to grow.
The package, which Bloomberg includes in its calculations, is now valued at as much as $120 billion based on current Tesla stock prices.
With multiple ventures driving his wealth, Musk remains well-positioned to continue amassing even more fortune in the years ahead.
Musk’s innovative companies, investments, and strategic alliances will likely keep him at the top of the billionaires’ list for the foreseeable future.
