Elon Musk, the world’s richest person, has reached a net worth of US$447 billion. According to the Bloomberg Billionaires Index, Musk is the first person in the world to achieve this level of wealth. The strong growth of Musk’s companies, including Tesla and SpaceX, have played a major role in this achievement
Tesla, Musk’s electric car company, has recently experienced a significant increase in stock value. On December 11, Tesla’s stock price reached a record high of US$424.88 per share before closing at a slightly lower rate of US$424.77. This sharp rise in value has been key to increasing Musk’s net worth.
Since the election of Donald Trump in November, Tesla’s stock price has grown by 65%. Investors believe Trump’s policies may increase the proportion of self-driving cars in the American automobile fleet. They also expect these policies to reduce tax benefits for Tesla’s competitors, helping the company stay ahead in the market.
SpaceX grows, receives valuable government contracts
SpaceX, Musk’s space exploration company, has also boosted his wealth. On December 11, SpaceX agreed to a US$1.25 billion deal with investors to buy company shares from insiders. This move increased SpaceX’s value to US$350 billion, making it the most valuable private company in the world.
SpaceX generates a large part of its earnings from government contracts. Since 2008, NASA and the Department of Defense have awarded the company contracts worth nearly US$19.8 billion. These contracts support the development of new rockets and satellites.
Under Trump’s leadership, SpaceX is expected to continue receiving government support. Trump has praised Musk’s efforts to explore Mars and attended a SpaceX launch after his election win.
New political allegiance between Musk and Trump
Musk’s support for Donald Trump has also attracted attention. Reports from the Federal Election Commission show that Musk donated US$250 million to Trump’s presidential campaign and related groups. Musk also backed Trump’s policies in key voting areas in the run up to the November presidential election.
Following his election victory, Trump appointed Musk to lead the new Department of Government Efficiency, which focuses on cutting federal spending.
Beyond Tesla and SpaceX, Musk’s artificial intelligence company, xAI, has also contributed to his rising wealth. Since May, xAI’s value has doubled to US$50 billion, further demonstrating Musk’s growing power in different industries.
Jared Isaacman invests in Musk’s SpaceX
Jared Isaacman, selected by Trump to lead NASA, also shares strong ties with Musk. Earlier this year, Isaacman participated in a SpaceX mission as the first non-professional astronaut to walk in space. He praised SpaceX as the most innovative company he had ever seen.
Isaacman invested US$27.5 million in SpaceX in 2021 through his payment company, Shift4 Payments. Isaacman, now worth US$1.7 billion, founded the company at just 16 years old.
Despite Musk’s recent achievements, a Delaware judge ruled against his 2018 pay package, which currently amounts to more than US$100 billion. This was the second ruling against the package and prompted Musk to label the court’s decision as “crazy.” However, even if the deal is cancelled, Musk will still remain the wealthiest person in the world.