Key Points:
- Historic milestone: Elon Musk became the first person in history to reach $500 billion net worth on October 1, 2025
- Tesla surge: Tesla shares rose 3.3% on October 1, adding approximately $6 billion to Musk’s fortune in a single day
- Massive lead: Musk’s net worth is $150 billion ahead of second-place Larry Ellison at $350.7 billion
- SpaceX valuation: The rocket company is now valued at $400 billion, up from $350 billion in December 2024
- xAI Holdings: Musk’s AI venture merged with X is valued at $113 billion, with Musk owning 53%
- Personal investment: Musk purchased nearly $1 billion worth of Tesla stock in September 2025
- Trillion-dollar package: Tesla’s board proposed a historic $1 trillion compensation plan tied to ambitious targets
- Trillionaire trajectory: Experts predict Musk could become the world’s first trillionaire by March 2033
New Delhi: Elon Musk has achieved an unprecedented financial milestone, becoming the first individual in human history to amass a net worth of $500 billion. According to Forbes’ Real-Time Billionaires tracker, the Tesla and SpaceX CEO’s fortune reached $500.1 billion as of 3:30 PM Eastern Time on October 1, 2025, marking a historic moment in global economic history. This remarkable achievement comes just ten months after Musk became the first person to surpass the $400 billion threshold in December 2024.
The milestone was propelled by a 3.3% surge in Tesla shares on Wednesday, which added more than $6 billion to Musk’s wealth in a single trading session. This rally reflects renewed investor confidence following Musk’s announcement that he would refocus his attention on Tesla after stepping back from his role overseeing President Donald Trump’s Department of Government Efficiency (DOGE).
Tesla Drives Wealth Surge
Musk’s fortunes remain closely tied to Tesla, where he holds a 12.4% stake valued at approximately $191 billion based on current market prices. The electric vehicle manufacturer’s stock has climbed more than 14% so far in 2025, despite facing challenges including weak car sales and tight profit margins that have lagged behind other technology giants in the “Magnificent Seven” group.
Tesla’s board chair Robyn Denholm confirmed last month that Musk was once again “front and center” at the company after several months of distraction. Shortly after this announcement, Musk demonstrated extraordinary confidence in Tesla’s future by purchasing nearly $1 billion worth of the company’s shares through a trust on September 12, 2025. This marked his first open-market purchase of Tesla stock since February 2020, involving approximately 2.57 million shares.
The Tesla board has since proposed an unprecedented $1 trillion compensation package for Musk, contingent upon achieving seemingly impossible performance targets, including expanding the company’s market capitalization more than eightfold over the next decade. This ambitious plan reflects Tesla’s strategic pivot from being primarily an automaker to becoming a leader in artificial intelligence and robotics technology.
SpaceX Soars to $400 Billion Valuation
Tesla represents only one pillar of Musk’s half-trillion-dollar empire. His aerospace company SpaceX, founded in 2002, has reached a staggering valuation of $400 billion following a private tender offer completed in August 2025, representing a substantial increase from its $350 billion valuation in December 2024. Musk owns an estimated 42% stake in the rocket manufacturer, translating to approximately $168 billion of his total net worth.
SpaceX’s dramatic valuation surge stems from the successful expansion of its Starlink satellite internet service and significant funding rounds from new private investors. According to Bloomberg News reports from July 2025, SpaceX has been in discussions to raise additional capital in deals that could further cement its position as the world’s most valuable private company.
xAI Holdings Adds Billions
Another major contributor to Musk’s unprecedented wealth is xAI Holdings, a company he established in March 2025 by merging his artificial intelligence venture xAI with the social media platform X (formerly Twitter), which he acquired in 2022. This consolidated entity was valued at $113 billion, with Musk holding an estimated 53% stake worth approximately $60 billion.
While xAI was last officially valued at $75 billion in July 2025 according to Pitchbook data, CNBC reported in September that the company was exploring a potential fundraising round targeting a $200 billion valuation. However, Musk publicly denied that xAI was actively raising capital at that time.
Widening Gap Among World’s Richest
Musk’s $500 billion fortune represents an extraordinary lead over other global billionaires, fundamentally reshaping the wealth landscape. Oracle co-founder Larry Ellison holds second place with a net worth of $350.7 billion, trailing Musk by an unprecedented $150 billion margin. This gap alone exceeds the entire net worth of most billionaires on the planet.
According to Forbes’ billionaires index as of October 1, 2025, the top ten richest individuals are: Elon Musk at $499.1 billion, Larry Ellison at $350.7 billion, Mark Zuckerberg at $245.8 billion, Jeff Bezos at $233.5 billion, Larry Page at $203.7 billion, Sergey Brin at $189 billion, Jensen Huang at $162.6 billion, Bernard Arnault at $160.6 billion, Steve Ballmer at $156.4 billion, and Warren Buffett at $148.5 billion.
Notably, Musk’s net worth is more than double that of Meta CEO Mark Zuckerberg, who ranks third, and Amazon founder Jeff Bezos, who holds fourth place. The comparison starkly illustrates that Musk’s wealth accumulation has outpaced every other billionaire by an extraordinary margin.
Remarkable Five-Year Journey
Musk’s ascent to half-a-trillion-dollar status represents one of the most dramatic wealth accumulations in modern economic history. His net worth timeline reveals the breathtaking speed of this financial transformation :
In March 2020, Musk’s net worth stood at just $24.6 billion. By August 2020, skyrocketing Tesla stock propelled him to become the fifth person ever to join the $100 billion club. He first claimed the title of the world’s richest person in January 2021 with nearly $190 billion. By September 2021, he became only the third individual in history to surpass $200 billion, following Jeff Bezos and Bernard Arnault. Musk reached $300 billion in November 2021, achieved $400 billion in December 2024, and now stands at nearly $500 billion in October 2025.
Path to Becoming First Trillionaire
Financial analysts and wealth trackers suggest that if Musk maintains his current trajectory, he could potentially become the world’s first trillionaire before March 2033. This projection coincides with the first vesting date for his proposed $1 trillion Tesla compensation package, which ties massive equity rewards to ambitious performance milestones.
However, Musk has repeatedly emphasized that his compensation is not primarily about personal wealth accumulation. In a September post on X, he wrote: “It’s not about ‘compensation,’ it’s about me having enough influence at Tesla to ensure safety if we build millions of robots. If I can get kicked out by activist shareholder advisory firms who don’t even own Tesla shares themselves, I’m not comfortable with that future”.
Criticism and Market Volatility Concerns
Despite this historic achievement, Musk’s wealth milestone has not escaped scrutiny from economists and financial analysts. Many experts emphasize that billionaire fortunes are inherently linked to stock market volatility and market sentiment. If Tesla’s share price declines or SpaceX’s valuation contracts, Musk’s net worth could experience equally dramatic decreases.
Critics have raised questions about the sustainability and business models of some Musk-led ventures, particularly X (formerly Twitter) and xAI. While investors view these companies as foundational platforms for future technology, skeptics question their long-term profitability and viability in competitive markets.
Musk has acknowledged that his wealth is largely “on paper,” as the vast majority of his fortune is tied up in equity stakes across his various companies rather than liquid assets. He has consistently stated that his true objectives transcend personal wealth accumulation, focusing instead on making human civilization multi-planetary through SpaceX and promoting sustainable energy adoption through Tesla.
Expert Analysis and Historical Significance
Financial experts recognize Musk’s entry into the $500 billion net worth club as a milestone not only for the individual but also for global economic history. This achievement demonstrates the extraordinary power of technology entrepreneurship and innovation to elevate an individual to unprecedented financial heights in the 21st century.
The concentration of such immense wealth in a single individual raises broader questions about wealth inequality, corporate governance, and the role of visionary entrepreneurs in shaping technological progress. As Musk’s ventures span electric vehicles, space exploration, artificial intelligence, social media, and renewable energy, his financial success reflects the convergence of multiple transformative industries.
Nevertheless, experts universally acknowledge that wealth figures at this scale remain highly fluid and subject to dramatic fluctuations based on market conditions, investor sentiment, regulatory developments, and company performance. While $500 billion represents a historic milestone, maintaining and expanding such wealth will depend on the continued success and growth of Musk’s diverse business empire.
