Tesla (Nasdaq:TSLA) chief Elon Musk became the first person in the world to have a net worth of $500 billion (£370 billion) on Wednesday, as tracked by Bloomberg’s Billionaires Index, which monitors the net worth of the world’s wealthiest 500 people. However, the feat was short-lived as his net worth pared back to $470 billion (£348 billion) a few hours later, according to the index.
The sudden jump in Musk’s wealth by over $10 billion (£7.4 billion) overnight could be linked to rising Tesla shares, which had gained 3.3% at Wednesday’s close and are up another 1.4% during Thursday premarket hours.
The Tesla stock has rallied hard in the past two weeks after Musk disclosed in a filing with the US Securities and Exchange Commission that he purchased 2.5 million company shares worth $1 billion (£744 million), marking his first open-market stock investment since 2020.
Musk already held a 13% stake in Tesla, but continues to seek more control of the firm, which has been aggressively investing in robotaxis, automation, and artificial intelligence. The company’s board also proposed a compensation plan for Musk last month valued at around $1 trillion (£744 billion), which would grant him up to 12% of the firm’s shares if it achieves specific targets.
The Tesla stock is up over 78% in the past one year, despite prolonged phases of severe volatility in recent times due to lower sales, rising competition, the end of electric vehicle tax breaks, and brand damage due to Musk’s political involvement with DOGE.
A few days ago, renowned Wedbush analyst Daniel Ives set the highest price target of $600 (£444) per share for the Tesla (Nasdaq: TSLA) stock and reiterated its buy rating on the stock, citing that the company is well-positioned to leverage $1 trillion opportunity in the AI, automation, and robotics segments.
However, Tesla is not the only company that drives Musk’s net worth. His AI startup xAI and rocket company SpaceX have also witnessed a surge in valuations this year. xAI had a valuation of $75 billion (£55.5 billion) as of July, according to Pitchbook. Meanwhile, reports emerged last month that the company was eyeing a valuation of $200 billion (£148.1 billion) after a fundraise, but Musk clarified it was not raising any capital now. Elsewhere, SpaceX was reportedly in discussions in August to raise money and sell insider shares at a valuation of close to $400 billion (£296.3 billion).
A Forbes report estimated that if Musk’s net worth growth trajectory remains the same, he could become the world’s first trillionaire by early 2033, when the first of two vesting dates for his $1 trillion Tesla pay package hits.
However, Musk believes the package is not about money, but rather about having adequate influence over Tesla to ensure safety if the company builds millions of robots.
‘If I can just get kicked out in the future by activist shareholder advisory firms who don’t even own Tesla shares themselves, I’m not comfortable with that future,’ Musk wrote in a September post on the X social media platform.
Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn’t indicate future returns.
Originally published on IBTimes UK
