 "How Elon Musk became the first person with net worth of $400 billion")
Elon Musk has made history.
The SpaceX and Tesla owner has become the first person to hit a net worth of $400 billion.
According to Bloomberg Billionaires Index, Musk’s net worth hit $447 billion last month.
For reference, Amazon founder Jeff Bezos, the second richest man in the world is worth around $250 billion – a whopping $150 billion less than Musk.
Meta CEO Mark Zuckerberg comes in third with $224 billion, Oracle co-founder Larry Ellison is at fourth with $198 billion, and French luxury goods tycoon Bernard Arnault, previously the world’s richest man, is at number five with a fortune of $181 billion.
But what happened? How did Musk’s worth cross $400 billion? And what does that mean?
Let’s take a closer look:
Why did Elon Musk’s net worth rise?
According to CBS, Musk’s fortune spiked by around $50 billion after an insider sale at Space X.
Forbes reported that SpaceX and its investors have agreed to execute a share buyback deal that estimated the company’s net worth at $350 billion – the most valuable private firm in the world.
The deal also pegs Musk’s 42 per cent stake in the space exploration firm at $147 billion.
SpaceX’s previous offer valued the entire company at $210 billion.
As per Hindustan Times, SpaceX bought back shares worth $1.25 billion from employees and insiders.
“What’s really crazy about this is that almost no investors wanted to sell shares even at a $350B valuation! SpaceX reduced the amount of shares it bought back from employees in order to allow some new investors in,” Musk wrote on X.
As per Bloomberg, Musk’s one-day wealth jump of $62.8 billion is the largest on record, and helped propel the combined fortunes of the world’s richest 500 people above $10 trillion, also for the first time, according to the index.
Musk’s fortune has witnessed a tremendous boost after Donald Trump won the presidential election.
Musk, who donated hundreds of millions of dollars to Trump and campaigned with him, is extremely close to the President-elect.
He is thought to be intimately involved in the new administration’s process of choosing candidates.
Trump has also said Musk would be the co-chief of a proposed Department of Government Efficiency (DOGE).
Many believe Musk’s proximity to Trump bodes well for his companies – which are regulated, subsidised and awarded contracts by the federal government – particularly Tesla.
Bloomberg reported that is thought that the Trump administration will eliminate tax credits for competitors of Tesla and give a fillip to self-driving cars.
No wonder that shares of the EV firm alone have spiked 70 per cent since November 5.
As per Bloomberg, the share sale and an increase in value of Tesla stock on Wednesday saw Musk’s fortune increase by $62 billion.
That’s the biggest one-day jump in a fortune ever.
It also resulted in the world’s 500 richest people now being valued at above $10 trillion for the first time.
Musk owns around 13 per cent of Tesla (excluding his stock options) worth around 170 billion.
He also has a 54 per cent stake in xAI – which focuses on tech and AI –worth around $50 billion.
As per The Wall Street Journal, the company was worth around half that in May.
Musk also owns X and the Boring Company.
However, it hasn’t all been smooth sailing.
A Delaware judge earlier in December reaffirmed her ruling that Musk is not entitled to receive a $56 billion compensation package.
This, despite shareholders of the electric vehicle company voting to reinstate it in June.
In a post on X after the decision, Musk said that “shareholders should control company votes, not judges.”
Tesla in a statement on X said, “The ruling is wrong, and we’re going to appeal,” adding that the judge had overruled a supermajority of shareholders.
Musk and Tesla can appeal to the Delaware Supreme Court as soon as McCormick enters a final order, which could come as soon as this week. The appeal could take a year to play out.
Elon Musk’s net worth
As per Mountbonnell.info, Musk’s net worth is now more than the annual GDP of several countries.
In fact, he is richer than the economic output of over 140 nations including including Pakistan, New Zealand and Kuwait.
The rise in Elon Musk’s net worth this year alone outpaces India’s merchandise exports which were valued at $144.12 billion in April-July 2024.
Elon Musk’s net worth is also higher than the Tata Group – which in July became the first Indian conglomerate to race past a combined valuation of $400 billion.
But that isn’t all.
As per Forbes, not only is Musk set to hold on to pole position as the world’s wealthiest man if SpaceX, Tesla and xAI maintain their value, it is possible he may get even wealthier.
Musk could in fact be the world’s first trillionaire by the end of this decade, as per the outlet.
With that sort of fortune, Musk could potentially exert unprecedented sway over countries – and even perhaps the future of humanity.
Musk has previously spoken about interplanetary travel in order to safeguard the human species and wanting to colonise Mars.
With inputs from agencies
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