Elon Musk Becomes World's First $500 Billion Man

Tesla recovery and AI ventures send billionaire’s net worth soaring

Elon Musk has made history by becoming the first individual to reach a net worth exceeding $500 billion (£371 billion), according to the latest Forbes Billionaires Index.

This financial milestone follows a surge in Tesla’s share price and soaring valuations of Musk’s other ventures, including SpaceX and xAI, his artificial intelligence startup.

Tesla Share Rebound Drives Wealth Surge

After a shaky start to 2025, Tesla stock rebounded strongly as investor sentiment improved. The turnaround came as Musk stepped away from his controversial involvement in the Trump administration, choosing instead to refocus on his businesses.

• Tesla shares have climbed over 14% year to date
• The stock gained 3.3% yesterday, adding over $6bn (£4.4bn) to Musk’s net worth
• Musk holds a 12.4% stake in Tesla as of mid-September
• He also purchased around $1bn (£740m) of Tesla stock recently, showing long-term confidence

Musk's renewed focus and investment have reassured investors, especially as Tesla pivots from simply being a car manufacturer to a key player in AI and robotics.

AI and SpaceX Valuations Boost Net Worth

In addition to Tesla’s gains, Musk’s fortune has been significantly boosted by other major ventures:

• xAI, his AI startup, was valued at $75bn (£55bn) in July, according to Pitchbook
• SpaceX is reportedly preparing a fundraising round valuing the company at $400bn (£296bn) (Bloomberg)

These developments underscore the growing influence of Musk’s companies beyond the automotive sector.

A Double-Edged Sword for Tesla?

Despite the recent share price recovery, Tesla still faces pressure:

• Slowing vehicle sales
• Narrowing profit margins
• Among the weakest performers in the “Magnificent Seven” group of tech giants

While the AI and robotics shift is promising, questions remain about how Tesla will maintain momentum in its core electric vehicle business. Analysts suggest that future success hinges on delivering innovation while maintaining affordability and margins.

Who’s Next? The Billionaire Race

With Musk now well ahead, the second richest person, Oracle co-founder Larry Ellison, trails with an estimated net worth of $350.7bn (£260bn).

This historic leap by Musk sets a new benchmark in the tech billionaire arms race and raises speculation over who might be next to cross the $500bn threshold — if anyone.

What This Means for Investors

Musk’s landmark valuation could spark renewed investor interest in:

• Tesla shares, especially with long-term focus on AI
• SpaceX, if it goes public or attracts more institutional investment
• AI and robotics-focused ETFs, which may benefit from xAI’s valuation growth

However, some caution is warranted due to ongoing volatility in Tesla’s earnings and broader macroeconomic headwinds.

Conclusion
Elon Musk’s $500 billion milestone is more than a personal achievement — it's a signal of shifting investor priorities towards AI, space tech, and transformative innovation. Whether this wealth trajectory is sustainable will depend on how Musk balances ambition with delivery across his sprawling empire. For now, though, he’s clearly in a league of his own.

Sources: (SkyMoney.com, Investing.com)