Elon Musk Becomes First Person Worth Over $400 Billion

Elon Musk, the world’s wealthiest individual, has achieved a historic milestone as his net worth exceeded $400 billion. By Wednesday afternoon, his assets—comprising Tesla, SpaceX, and xAI—were valued at an estimated $428 billion. This places Musk in a league of his own, with a fortune larger than any other billionaire tracked in nearly four decades.

A $58 billion increase in Musk’s net worth on Wednesday came after SpaceX and its investors finalized a buyback of insiders’ shares in a deal that valued the company at $350 billion. With Musk holding an estimated 42% stake, his share in SpaceX is now worth $147 billion, reflecting a more than 60% increase from the company’s earlier valuation of $210 billion. This new valuation has positioned SpaceX as the most valuable private company globally, surpassing giants like ByteDance, OpenAI, and Stripe.

Musk commented on X, the social media platform where he owns an estimated 75% stake, that the demand for SpaceX shares was exceptionally high. He noted that even at a $350 billion valuation, most investors were reluctant to sell, prompting the company to reduce the volume of shares it repurchased to accommodate new investors.

This year has been remarkably lucrative for Musk, whose net worth has risen by over $150 billion since the start of 2024. Contributing to this surge are the skyrocketing valuation of SpaceX, his 13% stake in Tesla, which accounts for nearly $170 billion of his fortune, and his estimated 54% ownership of xAI, valued at $50 billion as of November 2024. Tesla shares, in particular, have surged by more than 70% following the November 5 presidential election.

Musk has fostered a strong relationship with President-elect Donald Trump, investing heavily in his campaign and assisting with cabinet nominations. He is also expected to serve as co-head of the upcoming Department of Government Efficiency (DOGE), which will focus on streamlining federal expenses. This role may influence regulations impacting Musk’s businesses.

Despite the financial milestones, not all news has been positive for Musk. Early in 2024, a Delaware judge invalidated a 2018 agreement granting him options for an additional 9% stake in Tesla, worth approximately $56 billion at the time. Although Tesla shareholders reapproved the pay package in June, the judge reaffirmed the decision last week, marking a setback for Musk.

Having oscillated in and out of the top spot as the planet’s richest individual in recent years, Musk is now firmly ahead with a net worth approximately $180 billion greater than that of Amazon founder Jeff Bezos, the second-richest person. French luxury magnate Bernard Arnault, who briefly overtook Musk in January 2024 as Tesla shares dipped, has since fallen behind due to a decline in his wealth. Musk reclaimed the top position in late May and has maintained it since.

Given the soaring valuations of SpaceX, Tesla, and xAI, Musk is well-positioned to retain his title as the world’s richest person for the foreseeable future. While projections that he could become a trillionaire by the end of the decade may be speculative, his current trajectory cements his place as a historical figure in wealth accumulation.

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