Elon Musk is in the news again. The Tesla CEO has become the first person ever to surpass the $500 billion net worth barrier, topping the billionaire list. Musk’s net worth reached $500.1 billion at 4:15 p.m. ET on October 1, as per Forbes’s Billionaires Index.
The significant increase came after a rapid surge in Tesla stocks and higher valuations of his various ventures, including space tech and artificial intelligence. Oracle creator Larry Ellison lags far behind as the second-richest person in the world, with an estimated net value of $350.7 billion.
Musk’s wealth is closely tied to Tesla, where he holds over 12% of the shares. Following a bumpy start to 2025, Tesla stock has recovered, returning 14% year-to-date. The latest boost occurred on October 1, when Tesla stock gained 3.3% in one day, adding a whopping $6 billion to Elon Musk’s net fortune.
The comeback has been attributed to Musk’s renewed interest in his companies and the positivity surrounding Tesla's long-term growth prospects.
Although Tesla remains his leading wealth driver, Musk’s other companies are now contributing significantly to his wealth. His AI company, xAI, which he founded in 2023, was valued at $75 billion in July and is reportedly targeting a valuation of up to $200 billion in future funding rounds.
At the same time, his space venture company, SpaceX, has seen its private worth balloon to approximately $400 billion, ranking it among the world’s most valuable private companies. Collectively, these businesses have significantly contributed to boosting Musk’s overall net worth.
In a move that reflected optimism about Tesla, Musk purchased nearly $1 billion of the firm’s stock on September 12 through a trust. This was his first open-market buy since February 2020 and included about 2.57 million shares.
The purchase came during a critical period when Tesla's board was supporting Musk's proposed compensation package of $1 trillion, which was controversial at the time. The chairperson of Tesla's board of directors, Robyn Denholm, argued that the package was dependent on Musk's ability to achieve "seemingly impossible goals", highlighting his role as the driving force behind Tesla's development.
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Entering the $500 billion mark signifies a prominent position among billionaires. It highlights the inflated market expectations for Tesla, as well as for SpaceX and xAI.
For Musk, this shows how his bold and high-risk approach is once again helping his ventures transform industries.