Elon Musk has become the first person to reach an estimated net worth of $500 billion, according to Forbes magazine. The majority of his wealth is held in shares of Tesla, the electric carmaker, and SpaceX, the aerospace firm. Musk’s net worth is approximately $150 billion more than that of Larry Ellison, co-founder of Oracle.
Forbes initially calculated Musk’s wealth at $500 billion but later revised the estimate to $499.1 billion. The difficulty in estimating Musk’s wealth lies in the fact that many of his companies are not publicly traded, making it challenging to determine their value.
Musk surpassed the $400 billion mark in December 2024, driven by speculation that Tesla would benefit from his connections to the US government. At the time, there were expectations that Tesla would gain from the newly elected US President’s policies. However, the relationship between Musk and the US government later soured, leading to a decline in Tesla’s sales. Some potential buyers were deterred by Musk’s political views and his role in the government’s cost-cutting measures.
Despite this, Tesla’s stock has rebounded, driven by growth expectations in the robotics and automation sectors. The company is also expected to benefit from a surge in sales ahead of the expiration of federal electric vehicle incentives in late September. Musk’s portfolio includes other notable companies, such as social media platform X, AI developer xAI, and neural implant company Neuralink. Nevertheless, Tesla remains the central component of his fortune.
Tesla has announced a compensation plan that could be worth $1 trillion, contingent on achieving significant market value growth and fulfilling other performance conditions. This plan is subject to Musk remaining as the company’s chief executive and meeting specific targets. The development reinforces Musk’s position as a leading figure in the technology and automotive industries. As the global economy continues to evolve, Musk’s net worth and business ventures will likely remain under close scrutiny.
