Elon Musk becomes first person with $500B net worth
What's the story
Elon Musk has become the first person in history to reach a net worth of over $500 billion, according to Forbes. The milestone was largely fueled by a recovery in Tesla's stock prices and the rising valuations of his other ventures, including AI start-up xAI and rocket company SpaceX. As of Wednesday afternoon, Musk's net worth stood at an impressive $500.1 billion on Forbes's billionaires index.
Stock surge
Tesla stocks jump nearly 4% on Wednesday
Musk's wealth is closely linked to Tesla, where he held over a 12.4% stake as of September 15. The company's shares have jumped more than 14% this year. They surged nearly 4% on Wednesday alone, adding more than $7 billion to Musk's fortune. Amid challenges such as declining car sales and ongoing margin pressures, Tesla stock has emerged as one of the weakest performers among the "Magnificent Seven" megacap tech stocks in the US.
Future prospects
Musk's recent investments and board proposals
Musk recently bought around $1 billion worth of Tesla shares, showing his confidence in the company's future as it evolves from an automaker to an AI and robotics powerhouse. Last month, the Tesla board proposed a $1 trillion compensation plan for Musk with ambitious operational and financial targets while considering his request for a bigger ownership stake in the firm.
Rising stars
xAI's soaring valuation this year
Musk's AI start-up xAI and space venture SpaceX have also witnessed a surge in their valuations this year. As of July, xAI was valued at $75 billion, according to Pitchbook data. CNBC reported last month that the company was aiming for a valuation of $200 billion after fundraising efforts, though Musk denied any such capital-raising plans at the time.
Space venture
SpaceX's fundraising efforts and market valuation
In July, Bloomberg reported that SpaceX was looking to raise funds and sell insider shares in a deal valuing the firm at about $400 billion. This surge in valuation across his companies has contributed significantly to Musk's unprecedented net worth. Oracle founder Larry Ellison is the second-richest person on Forbes's list with a net worth of around $350.7 billion as of Wednesday.