Elon Musk, the CEO of Tesla and the world’s richest person, recently saw his wealth grow by an astonishing $9.4 billion in just one day. This increase brought his total net worth to an impressive $260 billion. The main reason for this surge was the rise in Tesla’s stock, which jumped by 7.36% to reach $243.92 per share, as reported by the Forbes Real-Time Billionaires Index.
Tesla’s strong performance followed the U.S. Federal Reserve’s unexpected decision to reduce short-term interest rates by 0.5 percentage points, which was a larger cut than most experts had predicted. Investors reacted positively to the news, boosting Tesla’s stock, which in turn, increased Musk’s wealth. However, Tesla’s current stock price is still about $27 below its 52-week high of $271, reached in July 2024.
While Tesla’s stock performed well, other traditional automakers had mixed results. General Motors and Ford both saw slight declines in their stock values, closing down by 0.1% and 0.6%, respectively. Stellantis, however, rose by 1.4%. In the global market, major Japanese automakers like Toyota and Honda experienced significant increases in their stock prices, benefiting from lower interest rates and a stronger U.S. dollar. Toyota’s stock rose by 5.1%, while Honda saw a 3.4% increase.
Many analysts believe that Elon Musk could become the world’s first trillionaire by 2027. According to projections from Informa Connect Academy, Musk’s wealth has been growing at an average rate of 110% per year, positioning him to hit the trillion-dollar mark before anyone else. However, Musk faces competition from other billionaires, including Jensen Huang, CEO of Nvidia, a company that has seen rapid growth due to the rise of artificial intelligence (AI). Huang’s net worth is currently estimated at $104 billion, and analysts predict he could become a trillionaire by 2028. Indian billionaire Gautam Adani is also considered a potential contender for the trillionaire title by that same year.
The key to Musk’s wealth lies largely in Tesla’s success. Tesla, the electric vehicle company Musk founded, is currently valued at around $710 billion, making it the most valuable automaker in the world. This valuation surpasses the combined worth of major companies like Coca-Cola, Bank of America, and Boeing.
Musk owns approximately 13% of Tesla, a stake valued at around $93 billion at today’s stock prices. He also holds 303 million stock options through a compensation package that was initially controversial but was ultimately approved by Tesla’s shareholders.
As Tesla continues to grow, the company’s future performance will play a significant role in determining whether Musk can maintain his lead in the race to become the world’s first trillionaire. Despite facing competition from other billionaires in emerging industries like AI, Musk’s financial future appears strong as long as Tesla continues to perform well.
While Elon Musk is on a remarkable financial trajectory, the coming years will be crucial in determining whether he can achieve the historic milestone of becoming the first person with a trillion-dollar net worth.
