The Tesla and SpaceX chief's financial leap is largely tied to Tesla's performance on the markets. Musk controls over 12% of the company, and a rebound in its shares this year, up more than 14% so far, added billions to his fortune in a single day. The stock climbed 3.3% on Wednesday alone, contributing roughly $6 billion to his total wealth.
This milestone follows months of volatility. Earlier in the year, Tesla struggled with declining sales and tighter profit margins, putting pressure on its share price. Investor sentiment began to turn when Musk renewed his focus on his companies, stepping back into a visible leadership role.
'He's front and centre again,' Tesla board chair Robyn Denholm remarked recently, noting his return after a spell of political activity in Washington.
To further demonstrate confidence, Musk purchased roughly $1 billion worth of Tesla stock in September. The move came as the company pushes to transform itself from a pure carmaker into a leader in artificial intelligence and robotics, a shift Musk has repeatedly described as Tesla's future.
But Tesla is only part of the picture. His rocket firm SpaceX is estimated to be worth about $400 billion following recent private share sales, while his artificial intelligence venture xAI, launched just last year, has already been valued at $75 billion, with expectations it could soar past $200 billion in future rounds.
Together, these enterprises reflect Musk's deepening reach into industries that investors see as defining the next era of technology.
Musk's achievement also widens the gap between him and his closest rival on the Forbes index, Oracle co-founder Larry Ellison, whose wealth is pegged at $350.7 billion.
While Musk's ascent to the $500 billion mark is historic, analysts caution that his fortune remains highly exposed to market swings. A sharp downturn in Tesla shares or changes in investor appetite for private tech valuations could significantly impact his net worth.
Still, with his portfolio spanning electric mobility, space exploration, and artificial intelligence, Musk's influence on the global economy is unlikely to diminish anytime soon.
Wycliffe Nyamasege
