Elon Musk’s wealth surpassed the $400 billion mark on Wednesday local time, becoming the first person in the world to surpass that figure, setting a new milestone for the world’s richest person, Caixin reported. Musk’s net worth surged by about $50 billion to $439.2 billion in just one day, setting a new record for wealth. The change was made possible by a number of favorable factors, notably a historic breakthrough in Tesla’s stock price, an insider stock deal for SpaceX and a spike in the valuation of artificial intelligence company xAI.
Musk’s wealth surges as Tesla shares soar
The explosive growth of Musk’s wealth is first and foremost closely tied to the leap in Tesla’s stock price. Since the end of 2022, Tesla’s stock price has experienced significant volatility, but since Trump’s election victory in November 2023, Tesla shares have rallied rapidly. After the election results were announced, Tesla shares rose 66% in a month and hit an all-time high on Wednesday. The market widely expects that the Trump administration may streamline the approval process for self-driving cars, especially the push for driverless cabs (Robotaxi), which will undoubtedly be extremely beneficial to Tesla’s future growth. At the same time, the Trump administration is likely to eliminate the electric vehicle tax credits offered by the Biden administration, a move that would further benefit Tesla in a competitive marketplace that relies less on these policies than Tesla’s competitors.
The sharp rise in Tesla‘s share price has also boosted Musk’s wealth significantly. As of today, Tesla has become the electric car maker with the highest market capitalization in the world, and Musk has benefited greatly as the company’s largest shareholder. In addition, Musk’s personal assets have ballooned as Tesla continues to expand in the global electric car market, further cementing his leadership position on the global rich list.
SpaceX valuation soars, cementing space industry dominance
In addition to Tesla’s performance, the growth of Musk’s spaceflight company, SpaceX, has been another major factor in the dramatic increase in his wealth. According to the latest news, SpaceX reached an agreement with its investors to buy back $1.25 billion worth of stock, a deal that has sent SpaceX’s valuation soaring to $350 billion, making it the world’s most valuable private startup.SpaceX’s success relies not only on its leading-edge rocket technology, but also its near monopoly on the satellite launch market in the U.S., with the likelihood of more future more contracts from both the government and commercial sectors in the future.
It’s worth noting that most of SpaceX’s revenue comes from contracts with the U.S. government, particularly with NASA. With Trump’s election, it is widely expected that SpaceX will receive more support under the Trump administration. Trump had publicly praised Musk’s vision for space exploration during the campaign and attended a SpaceX launch with him shortly after the election. Trump’s nominee for NASA Administrator, Jared Isaacman, is also a major SpaceX shareholder, and his high regard for SpaceX will undoubtedly give the company a further boost in its cooperation with the U.S. government.
xAI’s valuation doubles as new opportunities open up in artificial intelligence
On top of Musk’s breakthroughs in aerospace and automotive, the rapid growth of artificial intelligence company xAI has brought him considerable wealth in return. Since its May 2023 funding round, xAI has reportedly doubled its valuation to $50 billion. The market’s interest in xAI has increased significantly, especially after Trump’s election, and there is a lot of expectation for Musk’s layout in the field of artificial intelligence. xAI’s rapid growth not only proves Musk’s extensive layouts in the field of technology, but also puts him in a good position to take advantage of the emerging field of artificial intelligence.
Musk’s influence in Washington grows as political platform expands
Musk’s wealth has grown not only from his business successes, but also from his growing influence in U.S. politics. 2023 saw Musk appointed as co-head of the newly created Department of Government Effectiveness (DOGE), further expanding his voice in government decision-making. Through this platform, Musk will be able to communicate directly with the Office of the President of the United States, particularly on policy decisions related to technology and innovation, where he will be able to exert greater influence.
Musk’s political role is increasingly important in the context of U.S. government policies that increasingly favor support for innovative technology and private enterprise. By working closely with the government, Musk has been able to garner more policy support for companies like Tesla, SpaceX, and xAI. This will not only help boost his personal wealth, but will also further solidify his position as a global leader in the tech sector.
Conclusion
Musk’s wealth surpassed $400 billion, marking a new achievement on the list of the world’s richest people and highlighting his dominance in multiple industries. From the surge in Tesla’s stock price to the soaring valuation of SpaceX to the rapid rise of xAI, Musk’s business empire is expanding. And his wealth and influence will likely continue to climb in the future as he delves further into the U.S. political arena.
At this historic moment, Musk has not only demonstrated his business prowess as the world’s richest man, but also proved his ability to innovate in a variety of fields, including technology, space and artificial intelligence. With the continued growth of businesses such as Tesla, SpaceX, and xAI, Musk’s wealth still has the potential to grow further, and his name will continue to shine on the global economic stage.
