Tesla CEO Elon Musk has become the first person to accumulate a net worth of nearly half a trillion dollars, according to Forbes' billionaires index.
His wealth reached $500.1 billion as of Wednesday afternoon, after a surge in shares of Tesla and increased valuations across Musk's various business ventures throughout 2024.
Tesla shares climbed 3.3 percent on Wednesday alone, adding more than $6 billion to the billionaire's already massive fortune. The electric vehicle company's stock has gained over 14 percent this year despite facing significant hurdles in the automotive market.
Musk's financial empire relies heavily on his stake in Tesla, where he controls more than 12.4 percent of the company as of mid-September. His wealth extends far beyond the car manufacturer, spanning multiple companies including SpaceX, artificial intelligence startup xAI, and social media platform X.
The tech mogul's return to focusing on his core businesses has boosted investor confidence after a period of uncertainty.
Tesla board chair Robyn Denholm said last month that Musk was back "front and center" at the company following several months spent at the White House. Shortly after those comments, Musk purchased about $1 billion worth of Tesla shares.
However, Tesla has faced obstacles that have made it one of the poorest performers among the elite "Magnificent Seven" group of major technology stocks. Declining car sales and profit margin pressures have challenged the company's traditional automotive business. In response, Tesla's board proposed a massive $1 trillion compensation package for Musk last month, pushing for ambitious financial and operational goals while addressing his desire for increased ownership stakes.
The surge in wealth also reflects growing valuations of Musk's other ventures. His AI company xAI reached a $75 billion valuation in July, according to data from Pitchbook.
Ellison Challenges Musk’s Lead
Despite the historic milestone, Musk continues to face competition for the title of world's richest person. Oracle founder Larry Ellison currently ranks second on Forbes' list with a net worth of about $350.7 billion as of Wednesday. The gap between the two tech titans has narrowed drastically in recent months.
Just weeks ago, Ellison briefly overtook Musk as the world's wealthiest person following Oracle's spectacular earnings report. Oracle's stock jumped more than a third in minutes after markets opened in September, temporarily elevating Ellison above Musk before falling back by day's end. The difference between their fortunes was just $1 billion at that time, with Musk at $384.2 billion compared to Ellison's $383.2 billion.
Oracle's surge came after announcing more than $300 billion worth of new contracts, including deals with OpenAI, Meta, Nvidia, and Musk's own xAI company. The database software company projected its cloud infrastructure revenue would jump 77 percent to $18 billion this fiscal year, then climb to $144 billion within four years.