While Tesla’s shares stumbled earlier this year, they are currently on a steady climb. This positive shift has been linked to Elon Musk’s renewed focus on his companies.
Elon Musk, the owner of Tesla, has become the first person to reach a net worth of nearly USD 500 billion. This milestone is credited to a strong rebound in Tesla’s stock and soaring valuations of his other ventures. According to the Forbes Billionaire Index, Musk’s total wealth touched USD 500.1 billion as of 4:15 PM ET on Wednesday, making him the richest individual in the world, far ahead of other business leaders.
Musk’s fortune remains closely tied to Tesla, where he owns a stake of more than 12.4 percent as of mid-September. Despite facing challenges in sales, the electric carmaker’s shares have gained more than 14 percent this year. On Wednesday alone, Tesla stock closed 3.3 percent higher, adding more than USD 6 billion to Musk’s wealth.
Tesla board chair Robyn Denholm recently noted that Musk is now “back front and center” at the company after months of distraction related to his activities at the White House. Supporting this renewed focus, Musk purchased nearly USD 1 billion worth of Tesla shares last month.
Tesla is currently racing to transform itself from a traditional carmaker into a leader in artificial intelligence and robotics. However, the company still faces pressure from weak car sales and shrinking profit margins, which have placed its stock among the laggards of the “Magnificent Seven” tech giants.
In response, Tesla’s board has proposed a USD 1 trillion pay package for Musk. This package ties his rewards to ambitious financial and operational goals, while also granting him the larger stake he has been seeking.
Musk’s growing empire outside Tesla has also fueled his wealth. His artificial intelligence venture, xAI, was valued at USD 75 billion in July, with reports suggesting it could aim for a USD 200 billion valuation in the near future. Musk, however, has denied plans to raise fresh funds for xAI.
Meanwhile, SpaceX, Musk’s rocket company, continues its expansion. Bloomberg News reported in July that SpaceX was considering a funding round that would value the firm at around USD 400 billion.
With Musk’s diversified portfolio and Tesla’s resurgence, his position as the world’s richest individual looks firmly secured for the foreseeable future.
https://www.news18.com/world/elon-musk-becomes-worlds-1st-person-to-hit-500-bn-net-worth-shows-forbes-list-9609384.html
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