Where Did Elon Musk Get His Money Originally?
Elon Musk, one of the wealthiest individuals in the world, is renowned for his transformative ventures in technology, space exploration, and electric vehicles. With companies like Tesla, SpaceX, and Neuralink under his belt, many wonder how Musk originally amassed his fortune. To understand his financial roots, we must delve into his early life, entrepreneurial spirit, and the ventures that laid the foundation for his current wealth.
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Early Life and Influences
Born on June 28, 1971, in Pretoria, South Africa, Elon Musk displayed a knack for technology and entrepreneurship from a young age. His father, Errol Musk, was an engineer, and his mother, Maye Musk, a dietitian and model. While some speculate about his family’s financial background, Musk has clarified that his father’s wealth played a limited role in his success.
As a teenager, Musk taught himself computer programming, creating and selling a video game called Blastar at just 12 years old for $500. This early achievement hinted at his future as an innovator and entrepreneur.
College Years and First Ventures
Musk moved to the United States in the early 1990s to attend the University of Pennsylvania, where he earned degrees in physics and economics. While in college, Musk and a friend turned their rented house into a nightclub, earning extra cash by charging entry fees. This entrepreneurial venture was one of his first forays into generating income independently.
After briefly enrolling in a Ph.D. program at Stanford University, Musk dropped out after just two days to pursue his entrepreneurial ambitions in the burgeoning tech industry.
Zip2: The First Major Breakthrough
Musk’s first major business success came with Zip2, a software company he co-founded in 1995 with his brother, Kimbal Musk, and Greg Kouri. Zip2 provided online city guides and directories for newspapers, an innovative concept during the early days of the internet.
The company secured contracts with major publications like The New York Times and The Chicago Tribune, making it a valuable asset in the tech industry. In 1999, Compaq acquired Zip2 for $307 million, with Musk receiving $22 million for his 7% stake. This windfall marked Musk’s first significant step toward building his wealth.
X.com and PayPal: Transforming Online Payments
Using the proceeds from Zip2, Musk founded X.com in 1999, an online payment company aimed at revolutionizing the financial industry. X.com offered one of the first online banking platforms, allowing users to transfer money electronically.
In 2000, X.com merged with a rival company, Confinity, which had developed a popular money-transfer service called PayPal. The merged entity adopted the PayPal name and focused exclusively on online payments.
Under Musk’s leadership, PayPal grew rapidly, becoming the dominant player in online payments. However, internal disagreements led to Musk being replaced as CEO in 2000, though he retained a significant ownership stake.
In 2002, eBay acquired PayPal for $1.5 billion in stock. Musk’s share of the sale was $175 million, providing him with the financial resources to pursue his more ambitious ventures.
Investing in the Future: Tesla, SpaceX, and Beyond
After the PayPal sale, Musk turned his attention to projects with the potential to change the world. He invested $100 million to start SpaceX in 2002, aiming to make space exploration more affordable and accessible. Musk also invested in Tesla, joining the company as an investor and later CEO in 2004.
While Tesla and SpaceX are now global giants, Musk faced significant challenges in the early years, including financial struggles and skepticism from critics. His willingness to risk his fortune and reinvest in his companies played a pivotal role in their eventual success.
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Elon Musk’s original wealth came from his early ventures, particularly the sale of Zip2 and PayPal. These successes provided the capital to fund his visionary projects, including Tesla, SpaceX, and Neuralink.
What sets Musk apart is not just how he earned his money, but how he chose to use it—investing in groundbreaking technologies and industries that shape the future. His journey from a self-taught programmer in South Africa to a billionaire entrepreneur highlights his relentless drive, risk-taking mindset, and ability to turn bold ideas into reality.
Elon Musk’s Daily, Hourly, and Per-Second Earnings Revealed.
Elon Musk is renowned not only for his innovative enterprises but also for his remarkable wealth, which consistently draws public fascination. Many individuals are curious about the extent of his earnings on a daily, hourly, or even second-by-second basis. This article delves into Musk's income, providing an analysis of his financial trajectory, the variations in his wealth, and how it stacks up against other leading earners worldwide.
What is Elon Musk's Daily Income?
Elon Musk's immense fortune often prompts inquiries regarding his daily earnings. When analyzed, Musk's average daily income amounts to approximately $54.55 million. This wealth accumulation has been assessed over the last decade, during which he has amassed a significant fortune through enterprises such as Tesla and SpaceX, among others. Further breakdown reveals that this equates to about $2.27 million per hour, $37,879 per minute, and $631 per second, based on a 24-hour timeframe.
However, if we consider an 8-hour workday, his hourly earnings soar to an impressive $6.8 million, highlighting the magnitude of his financial ascent. These statistics offer a glimpse into the financial landscape of one of history's wealthiest individuals, whose net worth is estimated to be around $233 billion as of August 2024.
Elon Musk's Earnings Per Second
The amount Elon Musk earns each second may seem astonishing, yet it is fundamentally linked to the significant increase in the value of his equity holdings in companies such as Tesla. As of April 2024, Musk's average earnings per second are approximately $537, which translates to earning more in a single minute than the average annual salary in the United States. The fluctuating valuations of Tesla and other investments significantly influence his wealth from year to year. Although these figures are derived from net worth rather than actual cash flow, they illustrate the extent of his wealth accumulation.
The Variability of Elon Musk's Wealth
Musk's financial journey is not always linear. After reaching a peak net worth exceeding $338 billion in late 2021, his wealth has experienced considerable fluctuations due to the volatility of Tesla's stock. Nevertheless, he continues to rank among the wealthiest individuals in the world. Even after a decline of over $130 billion from his 2021 peak, he remains the richest person globally.
Elon Musk's Earnings in Relation to Leading Income Figures
In context, Musk's earnings surpass those of the highest-paid athletes and corporate executives globally. For example, Lionel Messi, recognized as the top-earning athlete in 2022, generated approximately $130 million in annual income, a figure that is insignificant when juxtaposed with Musk's earnings over just a few days. This extraordinary pace of wealth accumulation indicates that, if sustained, Musk could potentially achieve the status of the world’s first trillionaire within the next 43 years.
In summary
Elon Musk's financial gains reflect the magnitude and success of his enterprises, as well as the influence of equity appreciation in the contemporary financial landscape. His earnings on a daily, hourly, and even per-second basis not only affirm his status as a leading business figure but also underscore the considerable gap between his wealth and that of other prominent earners. Despite variations in his net worth, Musk remains at the forefront of the wealthiest individuals globally, and his prospective journey toward becoming the first trillionaire adds an intriguing dimension to his extraordinary financial narrative.
Elon Musk’s staggering earnings highlight the growing wealth disparity in society. While his financial achievements stem from successful ventures, they underscore the inequities inherent in a system where immense wealth is concentrated in the hands of a few. His daily income surpasses what many earn in a lifetime, raising questions about the fairness of economic structures.
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The focus on individual billionaires detracts from broader systemic issues like wage stagnation, poverty, and wealth inequality. Musk’s wealth, while impressive, also serves as a stark reminder of the urgent need for policies addressing the growing economic divide and ensuring a more equitable future.
Tesla Recalls 700,000 Vehicles for Tire Pressure Issue.
Tesla is pulling back nearly 700,000 cars due to a problem with the warning light in the tire pressure monitoring system.
Tesla is recalling nearly 700,000 cars due to a problem with the tire pressure monitoring system's warning light.
A letter from the National Highway Traffic Safety Administration revealed that this recall affects specific models, including the 2024 Cybertruck, 2017-2025 Model 3, and 2020-2025 Model Y.
The issue is that the warning light for tire pressure might not stay on between drives, which means drivers might not get alerted about low tire pressure. Driving on under-inflated tires can raise the chances of an accident.
To address this, Tesla is rolling out a free software update.
Owners will receive notification letters by February 15, 2025. For more details, Tesla customer service is available at 1-877-798-3752. You can also reach out to the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 or check out their website at www.nhtsa.gov.
Tesla's recall of nearly 700,000 vehicles highlights a significant issue with its tire pressure monitoring system, which could lead to dangerous driving conditions if left unresolved. The failure of the warning light to stay on between drives increases the risk of drivers not being alerted to under-inflated tires, which could result in accidents.
While Tesla is offering a free software update, this recall raises concerns about the company's quality control and the safety of its vehicles. With a wide range of models affected, this issue could tarnish Tesla's reputation for reliability and consumer trust in its safety features.
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Elon Musk's Path to Becoming a Half-Trillionaire.
Tesla's stock shot up by 6% today, boosting Elon Musk's net worth to $475 billion as of 3:30 pm PST on Monday. That’s a $25 billion jump from the $450 billion he wrapped up with last week.
Just to give you some background, before the election, Tesla shares were hovering around $250 each. On Monday, they hit a record high of $463 and are currently at $472 in after-hours trading. As you might know, Elon was a big supporter of Donald Trump, and many believe that with Trump’s victory, Elon, Tesla, and SpaceX are in a strong position.
What’s next?
Who can say? It’s possible that Elon and Trump could have a major fallout, leading to government intervention in his companies. On the flip side, Tesla might keep climbing. If that’s the case, Elon could become a half-trillionaire by tomorrow, being just $25 billion shy. He added $25 billion today and has seen a whopping $200 billion increase since late October! Just to reiterate, Elon could hit that half-trillion mark tomorrow.
He’s already made history as the richest person ever, being the first to surpass $300 billion without inflation adjustments, and he’s also the first to reach $400 billion and $450 billion. Soon, he might just be the first half-trillionaire. Crazy, right?
Elon Musk's journey to incredible wealth and power is certainly something to talk about, but it also brings up some serious concerns. His huge fortune, mainly from Tesla and SpaceX, comes with a fair share of drama and ups and downs. Musk's way of running things, his frequent rants on social media, and his unpredictable business moves have led to legal troubles and public criticism.
Plus, his impact on politics and the environment, especially regarding climate change and government policies, raises some eyebrows about what really matters to him. As he gets closer to being the world's first half-trillionaire, these issues could really affect how people see his legacy.
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Elon Musk Makes History with $400 Billion Net Worth.
Today marks a monumental occasion for those of us who are a bit obsessed with wealth.
For the first time in history, somebodies net worth has hit:
$400 billion.
As you might have guessed from the title and your own intuition, the fortunate individual whose net worth just hit that unprecedented number is… Elon Musk.
Elon's financial boost mainly comes from his shares in Tesla, which have nearly doubled since mid-October.
During the trading day, Tesla's stock peaked at $409.73. It wrapped up the day at $400.99. Even with that closing price, Elon Musk's net worth still reached $400 billion. He’s the first person ever to achieve a net worth of $400 billion.
How We Got Here
Back in 2009, Bill Gates was sitting at the top of the wealth ladder with a cool $40 billion. Fast forward to today, and that same amount wouldn’t even make you a contender for the top 40 richest people in the world.
Back in 2009, Elon Musk wasn’t even a billionaire—he might not have even hit the hundred-million mark. In 2007, Tesla was in a tight spot, nearly running out of cash. To keep the company afloat, Elon famously dumped all his savings into Tesla. At the same time, he was dealing with a pricey divorce, leading some media outlets to speculate that he was nearly broke.
Tesla went public in June 2010, valued at $2.2 billion. On that day, Elon’s net worth was around $200 million on paper. He officially became a billionaire for the first time in 2012 and hit the $100 billion mark in August 2020.
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On October 28, 2021, Elon’s net worth soared past $300 billion for the first time.
Just a week later, on November 4, 2021, he briefly reached $340 billion, breaking John D. Rockefeller's 80-year record as the richest person in modern history when adjusted for inflation.
However, the following year was tough for Elon, mainly due to a significant drop in Tesla's stock price.
By the end of 2022, his net worth had plummeted back to $130 billion.
Thanks to a rebound in Tesla's stock and a new valuation for SpaceX, Elon wrapped up 2023 with a net worth of $230 billion.
The first half of 2024 saw another dip, dropping to $168 billion in April. But the last few months have been a steady climb back up, leading us to now, with Tesla’s stock price over $400 and Elon boasting a record-breaking $400 billion net worth.
Image by Steve Jurvetson from Menlo Park, USA - Elon Musk at TED 2017, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=72830002
Can Elon Be The First Trillionaire?
Elon might be the first person to cross the $400 billion mark and hold the title of the richest person ever, but things could have played out differently. If history had taken a slight turn, he might not have been in the race for those records at all. Bill Gates had a real shot at becoming the world’s first trillionaire earlier this year when Microsoft’s market cap soared to $3 trillion.
The first half of 2024 saw a significant drop, with his net worth plummeting to $168 billion by April. However, the last few months have shown a steady climb back up. Now, with Tesla’s stock price over $400, Elon is back at a jaw-dropping $400 billion net worth.
While Elon Musk's achievement of a $400 billion net worth is undeniably impressive, it raises concerns about the growing wealth disparity in the world. Musk’s fortune largely stems from Tesla's soaring stock prices, a company that has faced criticism for its environmental impact and reliance on government subsidies.
This monumental wealth only reinforces the idea that a small group of individuals continue to control an outsized portion of global wealth, often at the expense of workers and communities. It’s hard to ignore the wider societal implications of such extreme wealth accumulation, especially in a time of increasing inequality.
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Elon Musk’s $56 Billion Tesla Payday Shattered by US Judge.
Kathaleen McCormick, a judge in Delaware, has determined that Elon Musk is not entitled to a substantial amount of money, even though Tesla shareholders have voted to reinstate it.
A judge determined on Monday that Elon Musk, the chief executive of Tesla, remains ineligible to receive a $56 billion compensation package, despite a shareholder vote six months prior that favored its reinstatement.
The ruling by Delaware's Court of Chancery, presided over by Judge Kathaleen McCormick, follows her earlier decision in January, which deemed the compensation package excessive and subsequently annulled it, a move that took investors by surprise.
This ruling has introduced uncertainty regarding Musk's future with the leading electric vehicle manufacturer. Tesla's board contended that the substantial compensation plan was essential to retain Musk's involvement in the company, a sentiment echoed by Musk himself, who is already recognized as the world's wealthiest individual.
Additionally, McCormick mandated that Tesla compensate the attorneys who initiated the case with $345 million, a figure significantly lower than the billions originally sought.
In court documents, Tesla argued that the judge should acknowledge a subsequent vote in June by its shareholders supporting Musk's pay package, emphasizing his pivotal role in the company's progress and asserting that he had met the milestones outlined when the compensation plan was established.
Tesla initially structured Musk's compensation package in 2017, establishing criteria for Musk to obtain 12 separate tranches of stock options contingent upon the company achieving specific revenue and market objectives. Shareholders overwhelmingly endorsed this package in 2018; however, one investor subsequently filed a lawsuit alleging that the board had been deceptive and that the package was inequitable.
Notable shareholders, including Norway’s sovereign wealth fund and the California state teachers’ retirement system, opposed the compensation plan, but their votes were ineffective.
Upon the package's approval in June, Musk expressed his enthusiasm during a Tesla event, stating, “I just want to start off by saying, hot damn, I love you guys!”
While he has not yet commented on McCormick’s latest ruling, he has previously criticized her and advised other business leaders to avoid Delaware, where the majority of U.S. companies register due to favorable tax regulations. Musk relocated Tesla's headquarters from California to Texas, although the legal proceedings regarding the compensation package continued in front of the Delaware judge.
McCormick had earlier determined that Tesla’s board had engaged in a “deeply flawed” process in assessing Musk’s compensation. McCormick discovered that the board was fraught with personal disputes and comprised predominantly of Musk's close associates, including his former divorce attorney.
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A Delaware court, led by Judge Kathaleen McCormick, has dealt a major blow to Elon Musk by rejecting his $56 billion Tesla compensation package, citing excessive payouts and a flawed approval process. Despite a recent shareholder vote in favor of reinstating the plan, McCormick ruled that Tesla’s board acted improperly, prioritizing Musk's interests over fairness.
Critics argue the package underscores corporate governance failures, with the board dominated by Musk's allies. This ruling not only challenges Musk's leadership but also raises questions about Tesla's prioritization of accountability. The decision further taints Musk's reputation amid growing scrutiny of his business practices.
Elon Musk's Net Worth Rockets to an Astronomical $422 Billion in 2025.
What is Elon Musk's Net Worth?
Elon Musk, a businessman, inventor, and investor born in South Africa and now a Canadian-American, has a staggering net worth of $422 billion, making him the richest person on the planet. Back in November 2021, he briefly hit over $340 billion, surpassing John D. Rockefeller and marking a milestone as the wealthiest individual in modern history. From January 2021 to March 2024, he held the title of the richest person, until Jeff Bezos took the lead again. However, in November 2024, Elon set a new record with his net worth hitting $400 billion.
Most of Elon's wealth comes from his 13% stake in Tesla, which amounts to about 412 million shares. He also has 304 million options to buy more Tesla shares, giving him around 21% ownership of the company. He’s used 58% of his Tesla shares as collateral for $3.5 billion in personal loans, and in 2022, he sold off $40 billion worth of Tesla shares to help finance his Twitter acquisition.
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Elon is a co-founder of both SpaceX and the Boring Company, and he chairs SolarCity. He holds a 43% stake in SpaceX, which was valued at $180 billion during its latest funding round. The Boring Company is estimated to be worth around $5 billion as of that same round. In October 2022, Elon bought Twitter (Now X) for $44 billion, owning about 79% of it at that valuation. However, Twitter's worth has dropped significantly under his leadership, possibly down to $19 billion. As mentioned earlier, he sold off $40 billion in Tesla shares in 2022 mainly to finance the Twitter deal.
9 Interesting Facts About Elon Musk
- He sold his first company, Zip2, to Compaq in 1999 for a cool $340 million.
- He put some of that cash into X.com.
- X.com eventually turned into PayPal, which eBay bought for $1.5 billion in 2002.
- He holds 43% of SpaceX, which is now valued at $180 billion.
- He also owns 21% of Tesla.
- His net worth shot up by $142 billion in 2020.
- He once claimed to be "cash poor" while having $500 million in debt.
- At one point, he owned $100 million in real estate.
- In 2020, he sold six homes in LA.
Salary & 2018 Compensation Plan
Elon Musk doesn't take a salary as Tesla's CEO. Instead, back in 2018, he set up a unique bonus plan that could be super profitable, depending on the company's market cap milestones. At the time, Tesla was valued at about $50 billion. Basically, the deal was that Elon would get big chunks of Tesla stock options—equal to 1% of the company—every time Tesla's market cap jumped by $50 billion and stayed there for at least three months.
The first batch of options came when Tesla hit a market cap of $100 billion, and he kept getting more as the company grew, all the way up to $600 billion. So, if Tesla reached that $600 billion mark, Elon would end up with options totaling 12% of the company. If he didn’t hit any of the 12 milestones, he wouldn’t get paid at all. Plus, he had a decade to make it happen.
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It took Tesla a year to reach that first $100 billion milestone. Fast forward two years to December 2020, and the market cap soared to $600 billion. Just a year later, it peaked at $1.23 trillion, which pushed Elon’s net worth to a staggering $340 billion. At that point, Tesla's board confirmed that since Elon hit the $600 billion mark in under ten years, he was eligible for the full payout of his compensation plan. This meant he got around 300 million Tesla options, valued at about $55 billion by January 2024. But that wasn’t the end of the saga for Elon.
A few shareholders were pretty upset about his pay package. One of them even filed a lawsuit claiming it was way too generous and that the board, which Elon had too much influence over, approved it. On January 30, 2024, a judge in Delaware sided with the shareholder and pretty much canceled the whole compensation deal with just a gavel bang. Elon can appeal this decision, and he probably will, but it looks like the board will need to create a new pay plan for his work from 2018 to the end of 2023.
Early Life
Elon Musk was born on June 28, 1971, in Pretoria, South Africa. He got his first computer when he was just ten years old and taught himself how to code. By the time he turned 12, he had already sold his first piece of software—a game he developed called Blaster. At 17, in 1989, he moved to Canada to go to Queen's University but switched gears in 1992 to study business and physics at the University of Pennsylvania.
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Musk earned a degree in economics and then picked up another bachelor's in physics. He even started a PhD in energy physics at Stanford but decided to leave to dive into the internet boom.
Success
Musk kicked off his entrepreneurial journey with Zip2 Corporation, which served as an online city guide. In 1999, Compaq Computer scooped up Zip2 for a cool $307 million in cash and another $34 million in stock options. That same year, Musk co-founded X.com, a platform for online financial services and payments. The following year, X.com merged with another company, leading to the birth of PayPal as we know it today. In 2002, eBay bought PayPal for a whopping $1.5 billion in stock.
In 2002, Musk launched his third venture, Space Exploration Technologies Corporation, or SpaceX, aiming to create spacecraft for commercial space travel. By 2008, SpaceX had made a name for itself, and NASA awarded them a contract for cargo transport to the International Space Station, with future plans for sending astronauts.
Then came Tesla Motors, a company focused on making electric cars more affordable for the masses. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Elon Musk, along with Ian Wright and J.B. Straubel, joined as the first employees and were later recognized as co-founders.
In June 2010, Tesla Motors went public, thanks to investments from Daimler and a partnership with Toyota, pulling in $226 million. Fast forward to 2012, and Musk made waves with SpaceX by launching the Falcon 9 rocket into space, carrying an unmanned capsule. Then in 2013, he introduced the Hyperloop concept, a new transportation system designed to travel over 700 mph between major cities using tubes instead of traditional railroads. Musk estimates that it could take about 7 to 10 years to develop, test, and get the Hyperloop up and running.
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Personal Life
Elon Musk has tied the knot three times, with two of those marriages being to actress Talulah Riley. His first marriage was to Canadian author Justine Wilson, which lasted from 2000 to 2008, and together they have five sons. He’s also had relationships with actress Amber Heard and Canadian musician Grimes. In May 2020, Grimes and Elon welcomed their son, X Æ A-Xii, and they had another child through a surrogate in December 2021.
Later in 2021, it was revealed that Elon also became a father to twins with one of his executives from Neuralink.
All in all, he has ten kids.
In July 2022, news broke that Elon had an affair in December 2021 with Nicole Shanahan, the wife of Google co-founder Sergey Brin. This affair reportedly prompted Sergey to file for divorce after four years of marriage. It’s a tough situation, especially since Sergey had been a strong supporter of Musk, investing in several of his ventures, including being an early backer of Tesla.
Real Estate
Elon used to have a real estate portfolio worth around $100 million in California. In Hillsborough, a Northern California town, he still owns a stunning 16,000-square-foot villa that's over a century old and sprawls across nearly 50 acres. He picked it up for $23.364 million back in 2017.
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Down in Southern California, he had six properties in the upscale Bel-Air area. His Bel-Air collection featured a massive 20,000-square-foot house he bought for $17 million in 2012, a 7,000-square-foot pad for $20 million in 2015, and a 9,300-square-foot home he snagged in 2016 for $24.25 million. In 2020, he shocked everyone by saying he wanted to sell off all his possessions, starting with his homes in LA. He kept his promise and sold them all, including four homes to a single buyer in December 2020.
In Austin, Texas, Elon has several adjacent homes that he bought for a total of $35 million. One of these is a gorgeous 14,400-square-foot Tuscan-style mansion.
Elon Musk Net Worth History
On January 1, 2020, Elon Musk's net worth was sitting at $28 billion. By the end of that year, it skyrocketed to $170 billion.
On July 13, 2020, he reached a milestone of $80 billion for the first time, with $15 billion coming from SpaceX and $65 billion from Tesla.
In August 2020, two key events pushed his net worth past $90 billion. First, around mid-August, Tesla's stock soared to an all-time high of $1,900, giving the company a market cap of $350 billion. With his 20% stake, that meant $70 billion for Elon.
The second boost came on August 18, 2020, when SpaceX's valuation jumped from $36 billion to $46 billion after a funding round, adding $22 billion to his net worth thanks to his 48% stake.
On November 17, 2020, he crossed the $100 billion mark for the first time, overtaking Mark Zuckerberg to become the third-richest person in the world.
Just a week later, on November 24, his net worth hit $128 billion, making him the second-richest after surpassing Bill Gates. At that point, he was $54 billion behind Jeff Bezos, whose net worth was $184 billion, marking a $100 billion increase since the start of the year.
Finally, on January 7, 2021, Elon reached $195 billion, officially becoming the richest person in the world, surpassing Jeff Bezos for the first time.
On January 8, 2021, Elon wrapped up the week with a net worth of $210 billion, up from $170 billion at the start. By October 2021, with Tesla's market cap soaring past $1 trillion and SpaceX valued at $100 billion, his net worth climbed to $300 billion.
Then, on November 1, 2021, as Tesla's market cap reached $1.2 trillion, Elon’s wealth jumped to $335 billion.
However, on December 13, 2022, he lost the title of the world's richest person, with his net worth of $165 billion falling behind Bernard Arnault's $167 billion.
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By the end of 2022, Elon’s fortune had dropped to $134 billion, a staggering $200 billion less than the previous year.
Fast forward to the end of 2023, and he was back at $210 billion.
In December 2024, his net worth soared to $400 billion.
Political Involvement
Elon Musk has increasingly shown interest in politics. Known for his outspoken views on social media, Musk has aligned himself with libertarian and centrist ideals, advocating for minimal government interference, free speech, and innovation-friendly policies.
Musk reportedly spent over $200 million on political campaigns and causes by 2025, funding candidates who champion technology, renewable energy, and deregulation. While he avoids strict party alignment, Musk has leaned toward supporting Republican candidates in recent elections, citing concerns over excessive government spending and restrictive regulations.
Musk's influence extends beyond donations; his platform on X (formerly Twitter) and public endorsements sway political discourse and voter opinions. Critics argue his involvement blurs the line between wealth and democracy, while supporters see him as a visionary leader addressing global challenges. Musk’s entry into politics underscores the growing intersection of business, technology, and governance.
Elon Musk, with a net worth of $422 billion, is the wealthiest person in the world as of January 2025. His fortune primarily stems from his stake in Tesla, SpaceX, and his ventures like Twitter (now known as X). In contrast, former U.S. President Donald Trump has a much smaller but still significant fortune, estimated around $2.5 billion, primarily from real estate, golf courses, and branding.
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Trump's wealth has been a topic of public discussion, especially during his presidency and recent legal challenges. Both Musk and Trump continue to have a significant impact on global business and politics, though their paths diverge in their industries and influence.
Elon Musk's xAI Seeks $6B to Expand AI Ambitions with Nvidia Chips
Elon Musk's xAI is in the process of raising up to $6 billion to acquire 100,000 Nvidia chips for its data center in Memphis. According to reports the artificial intelligence venture is aiming for a valuation of $50 billion. Faber's sources indicate that the funding round, expected to close early next week, will consist of $5 billion from Middle Eastern sovereign funds and an additional $1 billion from various investors, some of whom may be looking to increase their stakes.
This capital will be directed towards purchasing the Nvidia chips, which are crucial for Tesla's Full Self Driving technology that will utilize the new supercomputer in Memphis. Launched in July 2023, Musk's AI company aims to "understand the true nature of the universe," as stated on its website. Last November, xAI introduced a chatbot named Grok, inspired by "The Hitchhiker’s Guide to the Galaxy."
The chatbot was said to have undergone two months of training and boasted real-time internet knowledge. With Grok, xAI intends to compete with major players like OpenAI, which Musk co-founded before leaving due to a disagreement with co-founder Sam Altman in 2018.
The company will also be up against Google’s Bard and Anthropic’s Claude chatbot. Earlier in 2023, Musk reportedly acquired thousands of high-performance graphics processing units (GPUs) from Nvidia, essential for developing a large language model.
Judge to Rule on Elon Musk’s $56 Billion Tesla Compensation by Year-End
A Delaware judge is set to make a pivotal decision regarding Elon Musk's controversial $56 billion compensation package from Tesla, with a ruling expected by the end of this year. The compensation, which was annulled earlier this year, is now under scrutiny after a shareholder vote aimed at reinstating it.
Legal Context
In a recent letter to the attorneys involved in the case, Chancellor Kathaleen McCormick of Delaware's Court of Chancery stated, "I write to inform you that I aim to issue that decision before the end of this year." This announcement comes as Musk's 2018 compensation package—comprised entirely of stock options—remains a contentious issue within the corporate landscape.
In January, McCormick deemed the compensation plan "unfathomable," asserting that it was detrimental to Tesla shareholders. She noted that the package was negotiated by directors who appeared to be under Musk's influence, raising significant concerns about corporate governance and accountability.
Key Decisions Ahead
The chancellor is currently deliberating on two critical issues that could have far-reaching implications for Tesla and its investors. The first involves a request for Tesla to pay $1 billion in legal fees to the attorneys representing the shareholder who filed the lawsuit challenging Musk's compensation. The outcome of this decision could set a precedent for how legal fees are handled in corporate governance disputes.
The second and arguably more consequential decision relates to whether the June vote by Tesla shareholders effectively reinstated Musk's pay package after it was annulled by McCormick earlier this year. This vote has significant implications not only for Musk but also for the future of corporate compensation practices at Tesla.
Implications for Tesla
The outcome of McCormick's rulings could resonate throughout the corporate world, particularly in terms of executive compensation structures. If the court decides in favor of reinstating Musk's pay package, it may set a new standard for how compensation is negotiated and approved in high-stakes corporate environments. Conversely, if the ruling favors the shareholders, it could signal a shift towards greater accountability for executive pay in public companies.
As the deadline approaches, all eyes will be on Delaware's Court of Chancery and the implications of its forthcoming decisions on Musk, Tesla, and the broader corporate governance landscape. The case not only highlights the unique challenges associated with executive compensation but also raises critical questions about the role of shareholders in corporate decision-making.
With a ruling anticipated by year-end, the stage is set for a potentially landmark decision in corporate governance. Musk's unprecedented compensation package and the ensuing legal battles underscore the complexities of balancing executive rewards with shareholder interests in the ever-evolving corporate sphere.
The SEC filings show Musk’s transactions occurred between August 5 and August 9, shortly following the electric vehicle company’s 2022 annual shareholder meeting on August 4 in Texas.
Previously, Musk had announced on social media that he had “no further TSLA sales planned” after April 28.
The CEO’s latest stock move has prompted supporters of the EV brand to question if Musk is now truly finished selling Tesla shares and if he might repurchase the shares in the future.
In response, Musk said, “Yes. In the (hopefully unlikely) event that Twitter forces this deal to close and some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock.”
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1. PayPal
Following the financial success of his first-ever startup, Zip2, which sold for $307 million in 1999, Elon Musk went on to invest the bulk of his profits into his next venture. Musk founded financial services company X.com, one of the world’s first online banks, alongside Harris Fricker, Ed Ho, and Christopher Payne.
By 2000, X.com had merged with Silicon Valley software firm Confinity Inc and changed its name to PayPal. eBay purchased PayPal for $1.5 billion in 2002 when Musk owned 7,109,989 shares in the company. This made Musk the largest shareholder with a stake of 11.7%.
Following PayPal’s sale, Musk exited his position and used his proceeds to fund even larger investments such as SpaceX and Tesla.
2. SpaceX
Elon Musk founded his space exploration company SpaceX back in 2002, with the company’s founding mission to revolutionise space technology, including developing spacecraft that are capable of transporting humans to Mars.
In 2006, SpaceX was awarded a lucrative contract with NASA and, by 2008, SpaceX launched the first-ever private liquid-propellant rocket to reach orbit — Falcon 1. In 2010, SpaceX’s Dragon spacecraft travelled to the International Space Station (ISS) and, two years later, NASA granted Musk’s company a second contract to help shuttle crew members to the ISS. In 2021, NASA agreed to yet another contract with SpaceX to ferry astronauts from lunar orbit to the surface of the moon aboard its Starship vehicles.
In May of this year, SpaceX’s valuation hit a whopping $125 billion, a $25 billion increase from just the year before. Furthermore, last October, investment bank Morgan Stanley predicted that SpaceX could see Musk become the world’s first trillionaire, with analyst Adam Jonas expecting the company’s worth to rapidly reach £200 trillion and beyond as SpaceX cashes in on a range of potential space-related industries.
3. Tesla
In the early 2000s, Elon Musk co-founded electric vehicle startup, Tesla, contributing $6.5 million of the initial $7.5 million round of investment in 2004 and becoming the company’s chairman. In 2008, Musk became Tesla’s CEO and, two years later, Musk decided to take Tesla public. The EV company launched its initial public offering (IPO) on Nasdaq in June, with shares of common stock initially available to the public at $17 per share.
In October 2021, Tesla became the sixth company in US history to be worth $1 trillion. As of April 2022, Musk is Tesla’s largest shareholder, owning approximately 17% of the company’s shares, or around 175 million shares overall.
Commenting on Tesla’s purpose in 2019, Musk said, “The fundamental goodness of Tesla ... so, like the ‘why’ of Tesla, the relevance, what’s the point of Tesla, comes down to two things: acceleration of sustainable energy and autonomy.”
“The acceleration of sustainable energy is absolutely fundamental because this is the next potential risk for humanity [...] So obviously, that is, by far and away, the most important thing.”
4. The Boring Company
In 2017, Musk founded The Boring Company — an infrastructure and tunnel construction services company. Behind The Boring Company is the premise that finding effective ways of digging tunnel networks for vehicles and high-speed trains will end traffic congestion. The company aims to reduce the cost of tunnelling whilst simultaneously making tunnel production more efficient.
In 2019, the Las Vegas Convention and Visitors Authority approved a $48.6 million proposal from The Boring Company to produce the LVCC Loop, an underground tunnel that would run beneath the Las Vegas Convention Center, featuring three stations and also a tunnel for pedestrians.
By 2021, The Boring Company had officially completed the loop and opened it for public use. As of 2022, The Boring Company is valued at almost $5.7 billion and has also completed additional projects in Hawthorne, California and has another ongoing project in Las Vegas.
Final Thoughts
As the world’s richest man, Elon Musk has made some risky yet incredibly smart investments over the years. We hope you enjoyed looking at 4 of his greatest.
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Michael Kamerman, CEO of Skilling, shares his opinion on what stock you should watch this week.
Tesla
Despite a positive start to June, Tesla’s shares failed to hold above the 20-day working average, showing that the downward trend is still firmly intact.
However, with business magnate Elon Musk continuing to make headlines, it shouldn’t come as too much of a surprise that shares have taken a tumble. Just recently, he declared that approaching a recession was a “good thing” and later denounced remote working for Tesla employees.
Musk also told Tesla executives to pause all hiring and cut 10% of the total workforce. A move which has drawn strong criticism but also concern that talented employees will be deterred.
Despite this, Tesla’s AI Day scheduled for September 30th will showcase the Optimus Robot and the company remains a leader in the autonomous vehicle space.
Investors are right to be wary given Tesla is down by over 40% from all-time highs. However, ongoing geopolitical events have meant supply chains have been squeezed, another factor in the extent to which shares have been impacted.
Investors should sit tight to see whether Tesla stock was right to be criticised as overvalued or if Elon Musk can prove the critics wrong.
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Not investment advice. Past performance does not guarantee or predict future performance.
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