Elon Musk Becomes the First Person to Reach a Net Worth of $400 Billion

Elon Musk, CEO of Tesla (NASDAQ: TSLA) and SpaceX, has become the first person to reach a net worth of over $400 billion. This achievement was largely driven by a significant insider stock sale from space company SpaceX, which increased Musk's net worth by approximately $50 billion, bringing it to $439.2 billion. This information was reported by the Bloomberg Billionaires Index.

This surge in Musk's wealth indicates a significant recovery from a period at the end of 2022 when he experienced a decline of more than $200 billion. The resurgence of his fortune has accelerated, particularly following Donald Trump's electoral victory last month. Musk is known as a significant political donor and supporter of Trump.

Since the election, Tesla's stock value has risen by approximately 65%. This increase stems from investor optimism that the Trump administration will facilitate the development of autonomous vehicles and may eliminate tax incentives for electric vehicles, giving Tesla an advantage over its competitors. Musk is expected to play a significant role in the new government as co-chair of the Department of Government Efficiency, thereby gaining a prominent platform in Washington and direct access to the President.

Additionally, the valuation of Musk's artificial intelligence initiative, xAI, has risen to $50 billion, more than doubling since the last funding round in May. Reports from last month indicate that Trump's electoral success has heightened interest in this initiative.

On Wednesday, a stock buyback deal was signed between SpaceX and its investors, allowing for the purchase of $1.25 billion worth of shares from employees and other insiders. This deal positioned SpaceX, valued at approximately $350 billion, as the world's most valuable private startup.