Ties with Trump, additional SpaceX stock makes Musk world's first person to cross $400 bln in net worth
The net worth of the world’s billionaires fluctuates widely based on the stock valuations of the companies they hold shares in, including both those they control and those in which they have invested. While the fluctuation of stock values is typically linked to factors that directly or indirectly affect a company's performance, Tesla's stock has been notably influenced by CEO Elon Musk’s close connection with US President-elect Donald Trump.
This relationship helped Tesla stock gain at least 65%, reaching $450 per share in November. As a result, Musk's net worth surged by an additional $136 billion since November 5. It continued to grow on December 11, adding another $50 billion, as Musk acquired additional shares in his aerospace company -- from company employees and other insider investors.
Musk has now made history by becoming the first individual in the world to amass a net worth of over $400 billion, according to Bloomberg News estimate.
SpaceX, Tesla, xAI stock boost
Tesla CEO's remarkable financial ascent now fueled by a significant insider share sale at his aerospace company, SpaceX. This contributed an estimated $50 billion to his wealth.
According to media reports, SpaceX recently purchased up to $1.25 billion worth of shares from employees and company insiders, propelling the company’s valuation to an impressive $350 billion. Musk owns some 42% of the firm's shares.
Additionally, Musk’s net worth further moved up to $439.2 billion as the flagship Tesla’s stock hit a new high on Wednesday.
A key driver of Musk's over $400 billion net worth has been the political landscape in the United States, particularly after the election of President-elect Donald Trump. Since Trump's victory, Tesla’s stock has surged by approximately 65%, reaching an all-time high of $415. Investors are optimistic that Trump’s administration will ease regulations on self-driving cars and eliminate tax credits benefiting Tesla’s competitors, all of which have boosted the value of Musk's companies.
Trump factor
Musk’s wealth was further bolstered by his close association with Trump. He was appointed co-head of the newly formed Department of Government Efficiency (DOGE), a non-governmental body expected to advise on federal spending and operations, further aligning him with influential political figures.
In addition to SpaceX and Tesla, Musk’s artificial intelligence venture, xAI, has also seen significant growth, with its valuation more than doubling since its last funding round in May, reaching approximately $50 billion.
Although Musk’s position has experienced some volatility due to fluctuations in Tesla’s stock price recently, he has maintained the top spot in the list of world's richest since May. Forbs billionaire index had then placed Musk's net worth at around $369 billion, with Amazon's Jeff Bezos in second place and Oracle co-founder Larry Ellison in third.