Elon Musk Becomes the First Person to Hit $500 Billion Net Worth
Legendary entrepreneur Elon Musk has made history as the first individual to surpass the $500 billion net worth milestone. This achievement comes amid a surge in Tesla shares and rapidly increasing valuations of Musk’s other ventures, including XAI and SpaceX.
According to Forbes’ billionaire list, Musk’s net worth reached $500.1 billion at 4:15 PM on Wednesday, making him the richest person ever in recorded history.
Tesla Stock Surge Drives Wealth Growth
A significant portion of Musk’s wealth is tied to Tesla, where he owns over 12.4% of the company. Tesla shares have risen more than 14% this year, and on Wednesday alone, shares rose 3.3%, adding over $6 billion to Musk’s net worth in a single day.
Tesla shares faced early-year declines but have rebounded strongly as investor confidence returned. The company is now focusing on expanding beyond traditional electric vehicles to become a global leader in AI and robotics.
Musk’s Active Role and Confidence in Tesla
Tesla’s board, led by Chairman Robin Denholm, confirmed that Musk is now fully engaged in the company after months of involvement with White House-related work. Musk further demonstrated his confidence by purchasing nearly $1 billion worth of Tesla shares recently.
Valuations of XAI and SpaceX
Musk’s tech ventures have also contributed significantly to his wealth. XAI, his AI company, was valued at approximately $75 billion in July and is targeting up to $200 billion in valuation. Meanwhile, SpaceX continues to see soaring valuations due to advancements in space technology.
Tesla Compensation Plan and Stock Challenges
Tesla’s board recently proposed a $1 trillion compensation plan for Musk, setting ambitious operational and financial targets while accounting for his desire for a larger stake in the company.
However, Tesla has faced challenges due to declining car sales and pressure on profits, making its shares among the weaker performers of the so-called “Magnificent Seven” tech stocks.
Elon Musk’s rise to $500 billion underscores his influence across automotive, aerospace, and AI industries, solidifying his position as the most valuable individual in modern history.
