Elon Musk Becomes World’s First $500 Billion Net Worth Individual

Tesla CEO Elon Musk has once again redefined the boundaries of personal wealth. On Wednesday, Forbes’ Billionaires Index revealed that Musk’s net worth crossed an unprecedented $500 billion, making him the first person in history to achieve this milestone. The surge came on the back of Tesla’s stock rebound and soaring valuations of Musk’s other ventures, including SpaceX and xAI.

Musk Hits Historic $500 Billion Net Worth

As of 4:15 p.m. E.T. on Wednesday, Musk’s net worth stood at $500.1 billion, according to Forbes. This achievement solidified his position at the top of the global billionaires’ list. His closest competitor, Oracle cofounder Larry Ellison, trails with a fortune of $350.7 billion, nearly $150 billion behind Musk.

Tesla Stock Powers Musk’s Wealth

Musk’s fortune is closely tied to Tesla Inc., where he owns more than 12.4% of the company’s shares as of September 15. Tesla stock has climbed 14% year-to-date, with Wednesday’s trading session alone adding $6 billion to Musk’s personal wealth.

Despite a rough start to 2025, Tesla shares have bounced back, fueled by renewed investor confidence. Analysts point to Musk’s renewed focus on his companies as a key factor behind the rebound. Tesla board chair Robyn Denholm recently emphasized that Musk is now “front and center” at Tesla after several months of being preoccupied with political and external affairs.

Musk Buys $1 Billion Tesla Shares in Confidence Boost

Adding to market optimism, Musk disclosed a $1 billion personal investment in Tesla stock just days after returning focus to the automaker. The purchase was seen as a major vote of confidence in Tesla’s long-term future as it accelerates its transition from being primarily an electric vehicle manufacturer to becoming a leader in AI and robotics innovation.

Challenges: Car Sales Slowdown and Margin Pressure

While Tesla’s share price has strengthened, challenges remain. The company continues to battle sluggish car sales and shrinking profit margins, leaving it as one of the weaker performers among the “Magnificent Seven” megacap tech stocks. Analysts caution that despite Musk’s wealth surge, Tesla faces intense competition in both EVs and autonomous technology.

Tesla’s $1 Trillion Compensation Plan for Musk

In September, Tesla’s board proposed a new $1 trillion pay package for Musk. The plan includes ambitious financial and operational milestones for the company while also addressing Musk’s demands for a larger equity stake. If approved, it could further strengthen Musk’s financial influence over Tesla’s future direction.

Musk’s Other Ventures: xAI and SpaceX Surge in Valuation

Musk’s wealth is not only driven by Tesla but also by his other high-growth ventures:

• xAI (Artificial Intelligence Startup): Valued at $75 billion in July, reports suggest it could target a valuation of $200 billion in future fundraising. However, Musk denied any immediate capital-raising plans.

• SpaceX (Aerospace and Space Technology): Bloomberg reported in July that SpaceX was exploring insider share sales, valuing the company around $400 billion. SpaceX continues to dominate the private spaceflight industry with its Starship and satellite internet business Starlink.

Global Wealth Race: Musk vs Ellison

While Musk holds the crown as the world’s richest person, his closest rival, Larry Ellison, has seen his fortune climb to $350.7 billion. Ellison’s wealth has grown due to Oracle’s strong AI-related cloud services demand, but the gap remains wide as Musk’s diversified portfolio keeps accelerating in value.

Conclusion

Elon Musk’s rise to $500 billion net worth marks a historic milestone in global wealth creation. Powered by Tesla’s resurgence, SpaceX’s industry dominance, and xAI’s potential in artificial intelligence, Musk is not only setting records but also shaping the future of multiple industries. While challenges like declining car sales and tight margins remain for Tesla, Musk’s diversified empire ensures his position as the world’s most influential billionaire.