Elon Musk hits $400 billion net worth milestone

Elon Musk, the CEO of SpaceX and Tesla, has made history by becoming the first person to achieve a net worth of $400 billion, according to Bloomberg. This milestone follows a combination of factors, including a significant insider share sale and the recent U.S. election results, which boosted Musk’s wealth dramatically.

The Bloomberg Billionaires Index reports that an insider share sale of SpaceX played a key role in elevating Musk’s net worth by approximately $50 billion, bringing it to a staggering $439.2 billion. This marks a remarkable recovery after Musk’s net worth suffered a dip of more than $200 billion in late 2022. However, following the election of Donald Trump as president, Musk saw substantial gains, largely due to his influence as a major donor and ally to the incoming administration.

Tesla’s stock has surged around 65% since the election, as markets expect Trump’s administration to fast-track the development of autonomous vehicles while removing tax incentives for electric vehicles that benefit Tesla’s competitors. This optimistic outlook for Tesla has significantly contributed to Musk’s net worth.

Musk’s growing wealth is also linked to his involvement with his artificial intelligence venture, xAI. Since fundraising for xAI in May, the company’s value has doubled, reaching an estimated $50 billion. This growth has been partially attributed to the favourable political climate following Trump’s victory.

On December 11, SpaceX reached a major milestone, with the company and its investors completing a $1.25 billion share deal. This transaction valued the privately held space exploration company at $350 billion, making it the most valuable private startup globally. SpaceX’s revenue, primarily driven by U.S. government contracts, stands to benefit from the Trump administration’s support of the space sector, as the president-elect has consistently backed Musk’s vision for Mars exploration.

Trump has also publicly supported Musk’s ambitions, attending a SpaceX launch in Texas after the election and promoting the idea of space exploration during his campaign speeches.