Elon Musk, the dynamic entrepreneur and innovator behind Tesla, SpaceX, and xAI, has once again made history. As of Wednesday afternoon, Forbes estimated Musk's net worth at $428 billion, making him the first individual to surpass the $400 billion mark. This achievement further solidifies Musk's position as the richest person on the planet and marks a new milestone in Forbes' nearly four-decade history of tracking billionaires worldwide.

Record increase in wealth

Musk's wealth surged an unprecedented $58 billion on Wednesday. This spike was primarily due to SpaceX's latest valuation of $350 billion. Bloomberg first reported that SpaceX and investors had reached an agreement to buy back stock from insiders at this valuation. Musk's 42% stake in the company is now valued at $147 billion—an astonishing 60% increase from the previous valuation of $210 billion earlier in 2024.

This valuation not only makes SpaceX the most valuable private company globally, surpassing ByteDance (the parent company of TikTok), OpenAI (the creator of ChatGPT), and Stripe, but also highlights Musk's dominance in advanced industries.

"What’s really crazy about this is that hardly any investors want to sell their shares even with a valuation at $350 billion!" Musk shared on X, the social media platform where he owns a 75% stake. According to Musk, SpaceX has had to reduce its buyback volume to attract new investors.

Musk's golden year

2024 is a notable year for Musk, as his wealth has increased by more than $150 billion since January. A key factor contributing to this growth is his 13% stake in Tesla, now valued at nearly $170 billion, and his 54% stake in the artificial intelligence company xAI, which was privately valued at $50 billion in November. Tesla’s stock alone has risen more than 70% since the presidential election on November 5, driven by Musk's increasingly close relationship with President-elect Donald Trump.

Musk has been heavily involved in Trump's campaign and the subsequent cabinet formation process, contributing both financially and strategically. As a result, Musk will co-lead the newly proposed Department of Government Efficiency (DOGE), aimed at streamlining federal costs and potentially overseeing legal issues impacting his companies.

Challenges along the way

Despite these achievements, Musk's journey has not been without challenges. Earlier this year, a Delaware court overturned Tesla's controversial 2018 compensation package, which would have granted him stock options worth an additional $56 billion at that time. Although Tesla shareholders voted in June to reapprove this package, the court reaffirmed its decision last week. As Musk appeals this ruling, Forbes has reduced the valuation of these options by 50%, estimating them at $60 billion.

Clearly leading compared to other billionaires

Musk's current net worth puts him at $180 billion, surpassing Amazon founder Jeff Bezos, the second richest person in the world. Bernard Arnault, the French luxury goods tycoon, had briefly overtaken Musk earlier this year when Tesla's stock fell. However, Musk regained the top position in May and has held it since.

The Road Ahead

With SpaceX, Tesla, and xAI continuing to thrive, Musk's dominance in the billionaire rankings seems secure for now. If his wealth continues to grow at the pace seen in 2024—an optimistic scenario—Musk is likely to become the world’s first trillionaire by the end of this decade.

This rapid rise underscores Musk's unparalleled ability to innovate and leverage industries from electric vehicles to space exploration and artificial intelligence. Currently, the world is watching Musk reshape industries and redefine what is possible in the 21st century.

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