The Billionaire’s Wealth Skyrockets to a Record High
Elon Musk, the CEO of Tesla Inc, has become the first person to reach a net worth of over $400 billion, thanks to a surge in the price of Tesla stock. This milestone was achieved after shares of the electric vehicle company briefly hit a new 52-week high of $415 on Wednesday.
A $439.2 Billion Net Worth
Musk’s wealth stands at $439.2 billion, a significant increase from his year-end valuation of $229 billion in 2023. This jump is largely due to the rise in Tesla stock price, which has hit a new all-time high, as well as a recent share sale for SpaceX, the space company founded by Musk. SpaceX is now valued at $350 billion, adding around $50 billion to Musk’s wealth.
Other Factors Contributing to the Wealth Increase
In addition to the Tesla stock surge and SpaceX valuation, Musk’s wealth has also been boosted by the increased valuation of xAI, an artificial intelligence company founded by Musk. The company’s valuation has more than doubled since May, further adding to Musk’s wealth gains.
How Does This Compare to Others?
Musk’s $210.2 billion increase in wealth in 2024 is significant, surpassing the combined wealth of all the richest people in the world, except for Jeff Bezos ($244 billion) and Mark Zuckerberg ($219 billion).
The Factors Behind Tesla’s Stock Surge
Several analysts have raised their price targets on Tesla stock, leading to a surge in the company’s share price. The stock has gained 66.1% year-to-date, with the majority of gains coming from early November.
What’s Next for Musk and Tesla?
Musk’s wealth is likely to continue to increase in the coming years, thanks to Tesla’s growing dominance in the electric vehicle market and SpaceX’s expanding valuation. The new White House administration may also provide benefits to Tesla, including the elimination of EV tax credits that would hurt competitors.
Possible Challenges Ahead
However, Musk’s wealth may face challenges from a pending case against his 2018 Tesla pay compensation plan. A Delaware judge has struck down the plan, despite shareholder approval, but Tesla is expected to appeal the decision. Without the pay package, Musk’s wealth may not be as high, although he would still remain the world’s richest person.