Elon Musk has become the first person to reach a net worth above $500bn. The milestone reflects soaring values of Tesla and his other companies this year.
His wealth briefly touched $500.1bn on Wednesday afternoon in New York. It later slipped slightly to just over $499bn, according to Forbes’ billionaires index.
Musk’s other ventures, including the AI startup xAI and rocket company SpaceX, have also gained significantly in valuation in recent months.
Musk dominates global wealth rankings
The milestone confirms Musk as the richest person on earth. He remains far ahead of other tech industry leaders. Oracle co-founder Larry Ellison ranks second with about $350.7bn.
Ellison briefly surpassed Musk last month when Oracle shares surged more than 40%. The rise followed positive forecasts for its cloud business and artificial intelligence deals.
Tesla shares fuel Musk’s fortune
Most of Musk’s wealth comes from his 12% stake in Tesla. The company’s stock has climbed sharply this year.
Tesla shares rose more than 3.3% in New York on Wednesday. They have now increased over 20% since January.
Investors welcomed Musk spending more time on his companies. Earlier political involvement had raised concerns about his focus.
Political actions spark criticism
Musk faced backlash over his role with the Department of Government Efficiency. The Trump-linked agency sought to cut spending and jobs.
He also expressed opinions on immigration and diversity programmes on his platform X. These statements frequently drew public controversy.
Tesla chair Robyn Denholm said in September that Musk was now “front and centre” at the company.
Trillion-dollar pay package possible
Tesla’s board said Musk could secure a compensation deal exceeding $1tn. The payout depends on him achieving ambitious targets over the next decade.
Targets include increasing Tesla’s value eightfold, selling one million AI robots, and producing 12 million additional cars.
Musk shows confidence in Tesla
Last month Musk bought about $1bn worth of Tesla shares. Investors saw the move as a strong sign of confidence in the company’s future.
Tesla continues to face competition from Chinese rival BYD. At the same time, it is expanding further into artificial intelligence and robotics.
