Elon Musk has achieved a historic milestone by becoming the first person to reach a net worth of $400 billion, solidifying his position as the world’s richest individual. The latest surge in Musk’s wealth was primarily driven by an insider share sale of his privately held company, SpaceX. This transaction boosted Musk’s net worth by approximately $50 billion, bringing his total to $439.2 billion, according to the Bloomberg Billionaires Index.
Musk’s financial fortunes have seen a remarkable recovery since late 2022, when his net worth had plummeted by more than $200 billion. The recent acceleration in his wealth can be attributed to several factors, including the political landscape following Donald Trump’s election victory last month. Musk, a prominent political donor and advocate for Trump, has benefited from the market’s positive response to the election results.
Tesla’s stock has surged by about 65% since just before the election, driven by expectations that the Trump administration will streamline the rollout of self-driving cars and eliminate tax credits for electric vehicles that benefit Tesla’s competitors. Musk is set to play a significant role in the new administration as co-head of the newly created Department of Government Efficiency, providing him with a powerful platform in Washington and direct access to the Oval Office.
In addition to Tesla’s success, the value of Musk’s artificial intelligence startup, xAI, has more than doubled since its last funding round in May, reaching $50 billion. The Wall Street Journal reported that Trump’s victory has spurred new interest in the company.
On Wednesday, SpaceX and its investors agreed to purchase $1.25 billion worth of shares from employees and other company insiders. This deal values SpaceX at approximately $350 billion, making it the most valuable private startup in the world.
SpaceX’s financial success is largely due to its contracts with the U.S. government, which are expected to increase under the Trump administration. President-elect Trump has praised Musk’s vision of sending astronauts to Mars and attended a SpaceX launch in Texas shortly after the election.
Jared Isaacman, Trump’s nominee for NASA head, is a billionaire tech executive who made the first commercial spacewalk on a chartered SpaceX launch in September. He has lauded SpaceX as “the most innovative, literally impressive organization that I’ve ever seen” and invested $27.5 million in the company through his payments firm in 2021.
Despite a recent setback when a Delaware judge struck down Musk’s 2018 Tesla pay package, currently valued at over $100 billion, for a second time, Musk remains undeterred. Tesla plans to appeal the decision, which Musk has criticized as “absolute corruption” on X. Even if the compensation award is ultimately rescinded, Musk would still retain his title as the world’s richest person by a significant margin.
