Musk becomes first person to reach $400 billion net worth
What's the story
Elon Musk, the CEO of SpaceX and Tesla, has become the first person in history to cross a net worth of $400 billion (approx ₹33,938 crore), as per the Bloomberg Billionaires Index. The milestone came after an insider share sale at his aerospace company, SpaceX. The company bought up to $1.25 billion worth of shares from employees and insiders, adding roughly $50 billion to Musk's wealth and valuing the company at about $350 billion.
Stock performance
Tesla shares surge, boosting Musk's wealth
Musk's net worth soared further to $439.2 billion as Tesla shares hit a new high, closing at $424.77 on Wednesday. The electric car company's stock has surged 71% this year, driven by investor optimism about President-elect Donald Trump's policies. These policies are expected to ease regulations for self-driving cars and possibly remove tax credits that favor Tesla's competitors.
Business growth
Musk's AI venture xAI doubles in valuation
Apart from his space and EV ventures, Musk's artificial intelligence company, xAI, has seen its valuation more than double since May. The company is now worth around $50 billion. The increase is partly due to renewed investor interest after Trump's electoral victory. Despite legal challenges, including a Delaware court rejecting his record-setting Tesla pay package worth over $100 billion, Musk remains the world's richest person. Jeff Bezos ($249B) and Mark Zuckerberg ($224B) are the world's second and third richest individuals.
Political influence
Musk's role in Trump administration and wealth growth
Musk will be a key player in the incoming Trump administration as co-head of the newly formed Department of Government Efficiency (DOGE). The body will likely offer recommendations on federal spending and operations. Since Trump's election victory, Tesla shares have risen by about 65%. The political landscape in the US has played a major role in Musk's wealth growth.