In a remarkable feat, Elon Musk, the CEO of Tesla, has become the first individual in history to attain a net worth exceeding $500 billion (£370.9 billion). This milestone is largely attributed to the soaring value of his electric car company, Tesla, along with the significant appreciation of his other ventures in 2023. According to the Forbes Billionaires Index, Musk's net worth briefly peaked at $500.1 billion on Wednesday afternoon, New York time, before settling at just over $499 billion later in the day.
The impressive rise in Musk's net worth is not solely linked to Tesla. His other enterprises, including the innovative artificial intelligence startup xAI and the space exploration company SpaceX, have also seen significant valuation increases in recent months. These developments further solidify Musk’s position as the richest person in the world, placing him well ahead of competitors in the global tech industry.
As per the Forbes Billionaires Index, the founder of Oracle, Larry Ellison, ranks as the second richest individual, boasting a fortune of around $350.7 billion. Notably, Ellison briefly surpassed Musk last month after Oracle's shares surged by over 40%, driven by the company's unexpectedly positive outlook for its cloud infrastructure business and lucrative AI deals.
Musk's immense wealth is closely tied to his more than 12% stake in Tesla, a company whose stock has experienced a significant surge this year. By the end of trading on Wednesday, Tesla shares were up more than 3.3%, contributing to a cumulative rise of over 20% since the beginning of the year. This upward trajectory has been welcomed by investors who appreciate Musk's increased focus on his companies over political engagements.
Earlier this year, Musk faced scrutiny for his association with the Trump administration’s Department of Government Efficiency (DOGE), which aimed to reduce government spending and streamline job cuts. However, he has redirected his attention toward his businesses, including the X social media platform, while openly discussing his perspectives on immigration and diversity, equity, and inclusion (DEI) initiatives.
Robyn Denholm, chair of Tesla’s board, stated in September that Musk is now fully engaged with the company. The board has also communicated that Musk could potentially earn a compensation package exceeding $1 trillion if he meets a series of ambitious objectives over the next decade. These goals include increasing Tesla’s valuation eightfold, selling a million AI robots, and delivering an additional 12 million Tesla vehicles, among other targets.
Last month, Musk disclosed his acquisition of approximately $1 billion worth of Tesla shares, a move perceived by many investors as a strong vote of confidence in the company. Despite facing challenges, including fierce competition from rival electric vehicle manufacturers like China’s BYD, Tesla is actively transitioning into a business focused on AI and robotics.
As Musk continues to navigate the complexities of the tech and automotive industries, his historic net worth achievement not only reflects his personal success but also highlights the evolving landscape of the global economy.
