Elon Musk first to hit $400 billion net worth

Elon Musk, the CEO of Tesla (NASDAQ: NASDAQ:TSLA ) and SpaceX has become the first individual to amass a net worth of over $400 billion. This achievement was primarily driven by a significant insider share sale of his aerospace company, SpaceX, increasing Musk's net worth by approximately $50 billion, bringing it to $439.2 billion, as reported by the Bloomberg Billionaires Index.

The growth in Musk's wealth marks a substantial recovery from a period in late 2022 when he experienced a decline of over $200 billion. The resurgence of his fortune has been particularly strong following the election victory of Donald Trump last month, to whom Musk has been a major political donor and supporter.

Since the election, Tesla's stock has surged by around 65%, fueled by investor optimism that the Trump administration will facilitate the development of self-driving cars and may remove tax incentives for electric vehicles, which are seen as advantageous to Tesla's rivals. Musk is expected to play a significant role in the new government as the co-head of the Department of Government Efficiency, providing him with a significant platform in Washington and direct access to the President.

In addition, Musk's artificial intelligence venture, xAI, has seen its valuation soar to $50 billion, more than doubling since its last funding round in May. Reports from last month suggest that Trump's electoral success has spurred increased interest in the startup.

On Wednesday, a share purchase agreement was reached between SpaceX and its investors, allowing for the acquisition of $1.25 billion worth of shares from employees and other insiders. This deal positions SpaceX, valued at around $350 billion, as the world's most valuable private startup.

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Source: Investing.com