Elon Musk became the first individual to amass a net worth of approximately US$500 billion on Wednesday, driven by a rebound in Tesla shares and increased valuations for his private companies. Forbes’ billionaire index estimated his wealth at around US$500.1 billion at 4:15 p.m. Eastern Time.
Much of Musk’s fortune remains tied to Tesla, in which he held a little over 12.4% as of September 15. The automaker’s stock has gained over 14% this year and rose 3.3% on Wednesday alone, adding more than US$6 billion to Musk’s holdings.
Investor confidence in Tesla has improved following signals that Musk has refocused on the company. Tesla’s Chair, Robyn Denholm, recently stated Musk was once again “front and centre” at Tesla after months spent elsewhere. Shortly after, Musk disclosed a nearly US$1 billion purchase of Tesla shares, demonstrating strong confidence as Tesla shifts towards AI and robotics beyond traditional car manufacturing.
However, Tesla still faces challenges, including declining vehicle sales and ongoing margin pressures, which have made its stock one of the weaker performers among the so-called “Magnificent Seven” mega-cap technology stocks.
Last month, Tesla’s board proposed a new compensation plan for Musk valued at US$1 trillion, with ambitious financial and operational targets, reflecting his efforts to secure a larger stake in the company.
Musk’s private ventures have also seen their valuations soar. PitchBook reported that xAI was valued at about US$75 billion in July, with CNBC noting in September that it was considering raising up to US$200 billion—though Musk clarified this was not an active fundraising effort. Additionally, Bloomberg reported in July that SpaceX was in talks about fundraising and insider share sales at a valuation close to US$400 billion.