Tesla’s Elon Musk becomes first person to hit US$500 billion net worth, Forbes list shows
After a turbulent start to the year, Tesla shares have gained on improved investor sentiment as Musk’s focus returned to his companies
Tesla CEO Elon Musk on Wednesday became the first person ever to achieve a net worth of US$500 billion, propelled by a rebound in the electric-vehicle company’s shares and surging valuations of his other start-ups this year.
His net worth stood at US$500.1 billion as of 4.15pm US Eastern time, according to Forbes’ billionaires index.
Musk’s fortunes are tied closely to Tesla, where he held a more than 12.4 per cent stake as of September 15. The stock has risen more than 14 per cent so far this year and closed 3.3 per cent higher on Wednesday, adding more than US$6 billion to Musk’s net worth.
After a turbulent start to the year, Tesla shares have trended higher as investor sentiment improved on Musk bringing his focus back to his companies. Tesla board chair Robyn Denholm said last month that Musk was back “front and centre” at the company after several months at the White House.
Just days later, Musk disclosed his purchase of about US$1 billion worth of the shares in a huge vote of confidence for the future of Tesla as it races to transition from an automaker to an AI and robotics powerhouse.
Still, sagging car sales and persistent margin pressures have hurt the stock, making it one of the worst performers in the “Magnificent Seven” group of megacap tech stocks.