Tesla CEO Elon Musk's net worth hit an all-time high of $347.8 billion on Friday as shares of Tesla Inc. (TSLA) continued to rise and his artificial intelligence startups xAI and SpaceX’s valuation also climbed.
Tesla, xAI and SpaceX all rise in valuation
According to Bloomberg, the value of many of Musk's businesses has been soaring since Donald Trump's election victory thrust Musk, the so-called "first buddy," into the political spotlight.
Tesla shares rose 3.8% on Friday, reflecting continued optimism that the Trump team's self-driving and electric vehicle subsidy plans will give Musk's company an advantage over its peers. TSLA has gained 45% since Nov. 4, the day before the election, adding about $350 billion to its market capitalization.
xAI has more than doubled in value since its last funding round in May. Trump also attended a SpaceX launch event with Musk last week. The company is discussing a private equity sale that would value it at more than $250 billion, down from $200 billion when Chain News reported on SpaceX in June.
(Musk hints that his company will IPO? Bloomberg teaches you how to buy SpaceX)
Musk is the richest man in the world, far ahead of Bezos
Musk, the world's richest man, is now worth $348 billion, surpassing his all-time high of $340.4 billion set in November 2021, according to the Bloomberg Billionaires Index. His wealth has increased 35% since the day before the election, with more than two-thirds of it coming from Tesla stock and options. The second-placed Jeff Bezos, also the founder of Amazon, has a net worth of US$219 billion, which is only more than 60% of Musk’s assets.
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Trump's coming to power will benefit Tesla's self-driving cars
Musk, 53, aligned himself with Trump in the final stages of the campaign, campaigning with him in key states and personally donating more than $170 million to the Republican nominee's PAC. But this is just a drop in the bucket compared to the wealth Musk has increased during this time.
Members of Trump’s transition team reportedly plan to make a federal framework for autonomous vehicles one of the Department of Transportation’s priorities, which could lead to wider deployment of autonomous vehicles and would be a boon to Tesla. Current federal policy only allows Tesla and other automakers to deploy 2,500 fully self-driving vehicles per year. During Tesla's most recent earnings call, Musk complained that varying regulations in states such as California limit Tesla's ability to expand its self-driving technology.
Trump also favors eliminating the electric vehicle tax credit of up to $7,500 and cutting emissions regulations introduced by President Joe Biden's administration. That would hurt traditional automakers more than Tesla, which is less reliant on federal support for sales than many rivals.
Musk will also co-lead a newly created "Department of Government Effectiveness" DOGE with Ramaswamy to cut bureaucracy and regulations.
(Trump nominates Musk and Ramaswamy to lead the "Department of Government Efficiency DOGE" to reshape the government structure)
This article Musk’s wealth hits a new high, Trump comes to power, both Tesla and SpaceX have promising prospects. First appeared on Chain News ABMedia.