Elon Musk Achieves Historic $500 Billion Net Worth

Elon Musk, the CEO of Tesla, has made history by becoming the first individual to reach a net worth of nearly $500 billion. As of 4:15 PM ET on Wednesday, his wealth was recorded at $500.1 billion, according to Forbes’ billionaires index. This remarkable achievement is largely attributed to a significant rebound in Tesla's stock prices and the rising valuations of his other ventures.

Musk's fortune is closely linked to Tesla, where he owns over 12.4% of the company. This year, Tesla's shares have increased by more than 14%, with a notable 3.3% rise on Wednesday alone, which added over $6 billion to Musk's net worth. Despite facing challenges such as declining car sales and pressure on profit margins, investor sentiment has improved as Musk has refocused on his companies. Tesla board chair Robyn Denholm noted that Musk is now back “front and center” at the company after spending several months engaged in other activities.

In a show of confidence in Tesla's future, Musk recently purchased nearly $1 billion worth of Tesla shares. The company is currently transitioning from a traditional automaker to a leader in artificial intelligence and robotics. To support this shift, Tesla's board has proposed a $1 trillion compensation plan for Musk, which includes ambitious financial and operational targets.

Musk's wealth is also bolstered by his other ventures. His AI startup, xAI, was valued at $75 billion in July, with reports suggesting it could aim for a $200 billion valuation in the near future. However, Musk has stated that xAI is not currently seeking to raise additional funds. Additionally, his rocket company, SpaceX, is reportedly considering a funding round that could value it at around $400 billion.

Following Musk on the Forbes list is Oracle founder Larry Ellison, with a net worth of approximately $350.7 billion as of Wednesday. Musk's unprecedented financial milestone highlights his significant impact on the tech and automotive industries.