Elon Musk's net worth has become over six hundred billion dollars and has made him the richest person in history. The recent rise of nearly twenty percent in two months has led to a lot of speculation about whether he can potentially become the world's first trillionaire.
According to Forbes, most of the reasons for Musk's dramatic increase in net worth are from several private companies that he has invested in and are currently being valued (i.e., SpaceX); along with renewed momentum in the electric car company Tesla and also the acquisition of a number of rapidly-growing AI (Artificial Intelligence) companies.
Founded in 2002, SpaceX is a privately owned space exploration company, and the main reason why Musk's net worth has experienced such a significant increase.
Based on recent transactions and internal tender offers, SpaceX has recently been valued at approximately eight hundred billion dollars, nearly double its valuation at the beginning of this year. Musk holds ownership of forty-two percent of SpaceX, making it his most valuable asset.
According to some reports, SpaceX is planning to go public as early as twenty-six and estimates are that following an IPO it may be worth up to one point five trillion dollars.
Even with no IPO or public offerings, SPOC has increased the value of Musk's personal fortune by a minimum of one hundred fifty billion dollars while ultimately pushing his net worth over the six hundred billion dollars mark.
While SpaceX dominates Musk’s portfolio, Tesla remains an important factor and a supporter. Musk owns around 12% of Tesla, which is valued at $200 billion.
Tesla stock has risen about 13% this year, despite slow vehicle sales and intensifying competition.
Investor confidence has been boosted by Musk's commitment to Tesla being a pioneer in AI, robots, and self-driving in the distant future.
The firm’s recent progress in trialing robotaxis without safety monitors has added to the optimism. Also, shareholders approved a massive long-term compensation plan tied to aggressive performance targets, underscoring confidence in Musk’s leadership.
Musk’s xAI, an AI project, is a significant factor in his wealth. Reports say the firm is negotiating to raise $15 billion in fresh funds at a valuation of $230 billion.
Musk is believed to own a majority stake in the company, making xAI another rapidly growing component of his fortune, alongside SpaceX and Tesla.
Also Read: SpaceX Internal Share Sale Values Company at $800 Billion Ahead of IPO Plans
Musk's ascent has been remarkable. His fortune, which was under $25 billion in 2020, has now skyrocketed to $600 billion.
Musk, with a significant lead over the second-richest person, is now close to becoming the first trillionaire, mainly due to his private space projects, AI, and long-term bets on game-changing technologies.