Elon Musk has become the first person to reach a net worth of $500 billion (£372.9 billion), and he is now the first to surpass $600 billion.
According to the Bloomberg Billionaires Index, Musk’s net worth surged by $167 billion (£124.5 billion) in a single day, soaring to $638 billion (£475.8 billion). Year-to-date, his net worth has climbed by a mammoth $205 billion (£152.8 billion), according to the index. Forbes previously predicted Musk could become a trillionaire by 2033, but recent developments suggest he could reach that milestone much earlier.
Musk is now four times wealthier than Warren Buffett, the legendary investor and chairman of Berkshire Hathaway. This significant gap highlights Musk’s extraordinary financial growth and the expanding value of his business ventures.
Tesla’s stock, which has surged 17.5% over the past month and 8.1% in the past week, has played a key role in boosting Musk’s wealth. As he owns roughly a 12% stake in Tesla and has recently disclosed that he has bought more shares, this upward trend in stock price has had a direct impact on his net worth.
The surge in Tesla’s stock can be attributed to Musk confirming that the company is testing robotaxis without safety monitors in the front passenger seat. Wedbush analysts expect Tesla to roll out robotaxis in 30 US cities by 2026, which could revolutionise urban mobility and significantly increase revenue.
However, Musk’s recent net worth boost was also driven by reports that his SpaceX startup is likely to go public at a valuation of approximately $800 billion (£596.6 billion). As of 2022, Musk held an estimated 44% stake in the company. A successful IPO at this valuation would dramatically increase his wealth and mark one of the largest listings in history.
Meanwhile, Musk’s AI startup xAI is in advanced talks to raise about $15 billion (£11.1 billion) in equity at a valuation of $230 billion (£171.5 billion). This move highlights Musk’s ongoing efforts to lead in cutting-edge technology fields and diversify his sources of income.
Insights Into SpaceX IPO
SpaceX is preparing for a potential initial public offering next year. SpaceX CFO Bret Johnsen recently told staff and shareholders in a letter that the company and investors plan to purchase $2.5 billion (£1.8 billion) of shares from existing shareholders at $421 (£314) per share, nearly double its previous internal valuation.
Johnsen wrote: ‘Whether it actually happens, when it happens, and at what valuation are still highly uncertain, but the thinking is that if we execute brilliantly and the markets cooperate, a public offering could raise a significant amount of capital.’ The plan to buy back shares from staff could make SpaceX the most valuable private company, surpassing Microsoft-backed OpenAI, which is valued at nearly $500 billion.
If SpaceX completes a successful IPO, it would likely be one of the largest in history and a major wealth creation event for shareholders. Over the years, SpaceX has amassed billions of dollars in funding, including a multibillion-dollar contract with NASA to send a crewed mission to the Moon, as well as proposals for a lunar base.
Johnsen noted that an IPO would open new opportunities for SpaceX, enabling it to ramp up Starship launches, deploy AI data centres in space, build Moonbase Alpha, and send uncrewed and crewed missions to Mars—pushing towards the goal of making life multi-planetary within our lifetime.
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Originally published on IBTimes UK
