Tesla CEO Elon Musk on Wednesday became the first person ever to reach a net worth of nearly $500 billion, a landmark fueled by a rebound in Tesla’s shares and soaring valuations of his other ventures.
According to Forbes’ billionaires index, Musk’s fortune stood at $500.1 billion as of 4:15 p.m. E.T., cementing his lead as the richest individual in modern history.
Musk’s wealth remains tied closely to Tesla, where he owns more than 12.4% as of September 15. The electric vehicle maker’s stock has gained more than 14% so far this year, with a 3.3% jump on Wednesday alone, adding over $6 billion to Musk’s net worth.
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The rally reflects renewed investor confidence as Musk reasserted his focus on Tesla after months in Washington. Tesla board chair Robyn Denholm recently said Musk was once again “front and center” at the automaker. Days later, Musk himself underscored that commitment by buying about $1 billion worth of Tesla shares in a personal vote of confidence.
Still, Tesla has struggled with declining vehicle sales and persistent margin pressures, leaving it among the weakest performers in the so-called “Magnificent Seven” group of megacap technology stocks. Despite those headwinds, the company is betting big on its future. The Tesla board last month unveiled what could become the most audacious corporate compensation plan in history—a $1 trillion package for Musk – tied to aggressive financial and operational milestones.
The proposed plan aims to secure Musk’s leadership as Tesla pivots from being primarily an electric car manufacturer to positioning itself as an AI and robotics powerhouse. If approved, the package is expected to more than double Musk’s fortune, potentially catapulting him into uncharted territory as the world’s first trillionaire.
The plan’s structure echoes Musk’s earlier controversial pay package, which paid out in tranches based on stock market performance and operational targets, but this new proposal raises the stakes considerably.
The move comes as Musk’s wider portfolio of companies is also gaining in value. His AI startup xAI was valued at $75 billion as of July, according to Pitchbook, with speculation in September of a potential $200 billion valuation. Musk denied plans for fresh fundraising. Meanwhile, Bloomberg reported in July that SpaceX was weighing a share sale valuing the rocket company at around $400 billion. Both ventures add considerable weight to Musk’s already sprawling empire.
The combination of these factors has widened the gap between Musk and the world’s second-richest person, Oracle founder Larry Ellison, whose net worth stood at $350.7 billion as of Wednesday. Ellison’s fortune, rooted in Oracle’s steady cloud and database business, underscores the contrasting paths to wealth—steady growth and dividends versus Musk’s volatility-driven rocket rise.
However, the latest developments revive a broader debate about Musk’s staggering fortune, which comes with the question of whether it is a reflection of transformative innovation or a sign of valuations detached from fundamentals. Although Tesla’s new $1 trillion compensation package has faced criticism and its approval is not certain, it is designed to lock Musk into the company’s future, and is also expected to mark the next step in cementing his place not only as the world’s richest man but potentially as the first trillionaire in history.
