Musk Becomes World’s First Half-trillionaire
Tesla CEO Elon Musk has achieved a historic milestone, becoming the first individual to amass a net worth exceeding $500 billion.
According to Forbes’ billionaires index, Musk’s net worth briefly reached $500.1 billion on Wednesday afternoon New York time, before decreasing slightly to just over $499 billion later in the day.
The significant increase in valuation of Tesla and his other ventures, including xAI and SpaceX, has contributed to this achievement.
As a result, Musk has further cemented his position as the world’s richest person, surpassing rivals in the global tech sector. Oracle founder Larry Ellison ranks second, with a net worth of approximately $350.7 billion.
Musk’s wealth is closely tied to his substantial stake in Tesla, which has experienced a significant increase in share value this year.
Tesla shares rose over 3.3% at the end of New York trading on Wednesday and have now increased by over 20% this year.
The company’s shares have been gaining momentum in recent months as investors welcome Musk’s increased focus on his companies rather than politics. Musk faced criticism earlier this year for his involvement with the Trump administration’s Department of Government Efficiency.
He has also expressed his views on issues such as immigration and diversity, equity, and inclusion programs.
As stated by Robyn Denholm, chair of Tesla’s board, Elon Musk has taken on a more central role at the company, with Denholm describing him in September as now “front and centre”.
The board has also announced that Musk may be eligible for a compensation package valued at over $1tn if he achieves a set of ambitious targets within the next decade. To receive the package, Musk must increase Tesla’s value significantly, sell a substantial number of AI robots and Tesla vehicles, and meet several other goals.
Additionally, Musk recently acquired approximately $1bn worth of Tesla shares, which some investors view as a demonstration of confidence in the company.
Tesla has encountered various challenges in recent years, including intense competition from rival electric vehicle manufacturers such as BYD.
The company is also undergoing a transition into an AI and robotics business.
Source: BBC
