Elon Musk, the richest person in the world, now has a net worth of more than $400 billion. He is worth more than Jeff Bezos and Bill Gates combined.
Elon Musk is the CEO of Tesla, SpaceX, Neuralink, and X (formerly Twitter). He is the founder of Tesla, SpaceX, Neuralink, The Boring Company, OpenAI, Zip2, and the co-founder of PayPal (via its predecessor, X.com).
This incredible wealth milestone is not just a reflection of Musk’s business acumen but also the rapid rise of his companies’ valuations in recent months.
Let’s look at how Musk’s wealth and power reached this historic level and the businesses that got him there.
Tesla’s Role in Musk’s Wealth
The main driver of Musk’s vast fortune is Tesla, his electric vehicle (EV) giant. He owns 13% of the company, which is worth $1.34 trillion (market capitalization). It is one of the most valuable companies in the world.
As Tesla’s stock price skyrocketed, so did the value of his stake in the company. This year alone, the company’s shares have surged by over 70%, hitting record highs.
Its share price rose from $28.30 in January 2020 to $420 today (December 13th, 2024); that is an increase of 1,384% in nearly five years.
Experts and investors are optimistic about Tesla’s future. They believe that Musk will integrate artificial intelligence (AI) into his EVs, which will be the first step towards having fully autonomous vehicles, that is, 100% self-driving electric cars.
Investors are also optimistic about the company’s future because of Musk’s growing influence in the upcoming Trump administration, which should result in policies that will benefit his businesses.
SpaceX: A $350 Billion Giant
Musk’s private aerospace company, SpaceX, has also significantly contributed to his wealth. A recent insider share sale valued SpaceX at $350 billion. He owns 42% of the company.
Thanks to its Falcon rockets and Starlink satellite Internet business, SpaceX has become a key player in both commercial and government space ventures.
SpaceX’s Starship is a super rocket that is in a class of its own. According to spacex.com:
“Starship represents a fully reusable transportation system designed to carry both crew and cargo to Earth orbit, the Moon, Mars and beyond. Starship is the world’s most powerful launch vehicle ever developed, capable of carrying up to 150 metric tonnes fully reusable and 250 metric tonnes expendable.”
Since June this year, the space giant’s valuation has grown by 67%. Its share value increased from $24.62, in January 2020, to 192.5 today (December 13th, 2024); that is 700% growth in almost five years.
Musk has ambitious plans for SpaceX, such as colonizing Mars and further expanding its satellite Internet network.
In a BBC News article, Climate and Science Correspondent Patrick Hughes wrote:
“Nasa wants to use Starship (a SpaceX rocket) as part of its Artemis program, which aims to establish a long-term human presence on the Moon. In the more distant future, Musk wants Starship to make long-haul trips to Mars and back – about a nine-month trip each way.”
Musk’s Other Ventures
Musk is also involved in other innovative businesses:
- xAI: An artificial intelligence startup recently valued at $50 billion.
- Neuralink: A brain-technology company working on human-computer interfaces.
- The Boring Company: Focused on building underground transportation systems.
- X Corp (formerly Twitter): A social media platform Musk acquired.
Apart from diversifying his business portfolio, these ventures also reinforce Musk’s reputation as a visionary entrepreneur.
Political Influence and Wealth Growth
During the American presidential election campaign in 2024, Musk became a close ally of President-elect Donald Trump. He helped Trump become elected.
Musk is expected to help shape policies through his role in the new Department of Government Efficiency. This partnership has boosted investor confidence in Musk’s ability to navigate and leverage government regulations to benefit his businesses.
The Bigger Picture
In just five years, Musk’s net worth rose from $25 billion to more than $400 billion today. That is an increase of 1,500%.
Love him or hate him, we can’t deny that he’s an exceptional entrepreneur.
Many people, however, express concern about America’s growing wealth inequality and the role of billionaires in shaping economies and policies.
As Musk continues to push boundaries in technology and innovation and his political influence soars, the world will be watching closely to see how his evolving power shapes the economies both at home and abroad.