Elon Musk has made history by becoming the first individual to achieve a net worth of $400 billion, according to Bloomberg. His remarkable increase in wealth can be attributed to a significant deal that boosted the valuation of his rocket company, SpaceX, to around $350 billion.
This deal involved SpaceX and its investors agreeing to purchase up to $1.25 billion in insider shares.
Since the recent US presidential elections, Musk has experienced a substantial rise in his wealth.
His association with President-elect Donald Trump has brought his businesses into the limelight. Musk, who is the CEO of Tesla and SpaceX, also owns X and heads several other ventures, including Neuralink, xAI, and The Boring Company.
Alongside Vivek Ramaswamy, he is set to lead a new initiative called the “Department of Government Efficiency” (DOGE), named after a popular meme coin.
On Wednesday, Tesla’s shares closed at a record high of $424.77. As Tesla’s largest individual shareholder, Musk has reaped massive benefits from the stock’s surge, which has been partially fueled by the broader market’s performance—the NASDAQ index exceeded 20,000 for the first time.
Since Election Day, Tesla’s stock price has jumped approximately 65%, with investors optimistic that Musk’s connection to the Trump administration will usher in a favourable deregulation environment for the company.
In addition, Musk’s artificial intelligence startup, xAI, saw its valuation more than double in November after a funding round, rising from $25 billion to $50 billion, as reported by The Wall Street Journal.
Since November 5, Musk’s wealth has increased by about $136 billion, according to the Bloomberg Billionaires Index. Although billionaire rankings often fluctuate, Musk has established a significant lead over his competitors. As of December 10, before reaching $400 billion, he was already $140 billion ahead of the second-richest person, Jeff Bezos, the founder of Amazon.
Recently, a Delaware court rejected Musk’s record-breaking Tesla shareholder-approved pay package, previously valued at $101 billion. However, Bloomberg’s calculations may still reflect the valuation, which could now be as high as $120 billion based on Tesla’s current stock price.
Regardless, Musk continues to enjoy extraordinary wealth, with many opportunities available for further financial growth in the coming years.
Story by Obaapa Janee
