World’s richest person Elon Musk has achieved another milestone by becoming the first person in history to amass a net worth exceeding $400 billion, driven by skyrocketing valuations of his holdings beyond Tesla -- namely, a record-breaking tender offer at SpaceX and a surge in the worth of his artificial intelligence venture, xAI.
Musk’s fortune, estimated at over $400 billion by both Bloomberg and Forbes, gained remarkable momentum overnight following the latest insider share sale at SpaceX. His net worth saw a record one-day surge of $62.8 billion, largely due to the SpaceX buyback deal.
SpaceX share buyback drives Elon Musk's wealth surge
The transaction, which allows employees and insiders to sell shares, valued the privately held space exploration company at $350 billion, making it the most valuable private startup globally. Musk’s 42 percent stake in SpaceX is now worth approximately $147 billion, according to Forbes estimates.
Tesla remains the core of Elon Musk's fortune
Tesla shares, which form the bulk of Musk’s wealth, hit a new all-time high on Wednesday, closing at $424.77. The stock has gained 71 percent this year, buoyed by optimism surrounding President-elect Donald Trump’s policies, which are expected to streamline the rollout of self-driving cars and potentially eliminate tax credits benefiting Tesla’s competitors.
xAI valuation doubles, boosting Musk's diversification
Musk’s artificial intelligence startup, xAI, has also seen its valuation more than double to $50 billion, driven by renewed investor interest following Trump’s electoral victory. The company raised funds in May and continues to attract significant attention in the burgeoning AI space. Experts say that by diversifying beyond the electric automotive sector, Musk’s portfolio has proven more resilient and versatile, especially amid the political changes in the US.
A record-breaking year for Elon Musk
Musk’s latest financial achievement surpasses his 2021 milestone, when he became the first person in history to surpass a $300 billion fortune. This year alone, Musk has added $218 billion to his net worth, more than any other individual on Bloomberg's Billionaires Index. His wealth now accounts for a significant portion of the combined $10 trillion held by the world’s 500 richest individuals.
In addition to his business successes, Musk is set to play a prominent role in the incoming Trump administration as co-head of the Department of Government Efficiency, a newly created body tasked with driving innovation in public administration.
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