Elon Musk has become the first individual to hold a net worth above $500bn. The milestone reflects soaring values of Tesla and his other companies this year.
His fortune briefly reached $500.1bn on Wednesday afternoon in New York. It later fell slightly to just over $499bn, according to Forbes’ billionaires index.
Musk’s other ventures, including AI startup xAI and rocket company SpaceX, have also seen significant valuation growth in recent months.
Musk widens lead as world’s richest
The achievement cements Musk’s position as the richest person on the planet. He remains far ahead of global tech rivals. Oracle co-founder Larry Ellison ranks second with about $350.7bn.
Ellison briefly overtook Musk last month when Oracle shares surged more than 40%. The jump followed strong forecasts for its cloud business and artificial intelligence deals.
Tesla stock powers Musk’s fortune
Most of Musk’s wealth comes from his 12% stake in Tesla. The company’s stock has risen sharply this year.
Shares climbed more than 3.3% in New York on Wednesday. They have now increased over 20% since January.
Investors welcomed Musk dedicating more focus to his businesses. Earlier political involvement had raised concerns among shareholders.
Politics draw criticism
Musk faced backlash over his role with the Department of Government Efficiency. The Trump-linked agency aimed to cut spending and reduce jobs.
He also shared opinions on immigration and diversity programmes through his platform X. These statements often sparked heated debate.
Tesla chair Robyn Denholm said in September that Musk was now “front and centre” at the company.
Trillion-dollar compensation possible
Tesla’s board revealed Musk could secure a pay package exceeding $1tn. The payout depends on him meeting ambitious targets over the next decade.
Targets include raising Tesla’s value eightfold, selling one million AI robots, and producing 12 million more cars.
Musk reinforces confidence with new shares
Last month Musk purchased about $1bn worth of Tesla stock. Investors saw the move as a clear sign of confidence in the company’s future.
Tesla continues to face tough competition from Chinese rival BYD. At the same time, it is expanding further into artificial intelligence and robotics.
