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Elon Musk, the South Africa-born entrepreneur behind SpaceX and Tesla, has become the first person in history with a net worth exceeding $800 billion, according to Forbes.
This milestone comes after his rocket company, SpaceX, acquired his artificial intelligence and social media firm, xAI, in a merger that values the combined entity at $1.25 trillion. The deal alone added $84 billion to Musk’s fortune, bringing his total wealth to an unprecedented $852 billion.
Before the merger, Musk owned approximately 42% of SpaceX, valued at $336 billion based on a December tender offer. He also held a 49% stake in xAI, worth $122 billion.
Following the merger, Musk’s stake in the combined company rose to an estimated 43%, or $542 billion, making SpaceX his single most valuable asset. In addition, Musk owns a 12% stake in Tesla worth $178 billion, along with Tesla stock options valued at $124 billion, further boosting his wealth.
Musk’s rise to the $800 billion milestone is part of a rapid series of wealth records set in the past year. In October, Tesla’s stock surge pushed his net worth to $500 billion, marking the first time any individual had crossed that threshold.
By mid-December, private investors valued SpaceX at $800 billion, lifting Musk’s wealth to $600 billion. Just days later, a Delaware Supreme Court decision restored his Tesla stock options, pushing his net worth to $700 billion.
The recent merger with xAI positions Musk to potentially become the world’s first trillionaire. Tesla shareholders approved a pay package for Musk that includes 12 tranches of shares, contingent on achieving specific milestones over the next decade, which could expand his stake in Tesla to 25%.
Strategic Mergers Fuel Rapid Growth
This is the second major corporate merger Musk has completed in less than a year. Last March, he combined xAI with X, his social media company, in a deal that valued xAI at $80 billion and X at $33 billion.
The consolidation strategy demonstrates Musk’s focus on integrating artificial intelligence and social media with his aerospace ambitions, creating a technology conglomerate of unprecedented scale.
Forbes highlights that Musk’s wealth growth is not just a reflection of stock market fluctuations but a result of bold entrepreneurial decisions.
By merging his companies and leveraging AI, social media, and aerospace assets, Musk has set four net worth records within four months, an unprecedented feat in modern financial history. His strategic vision continues to reshape industries and solidify his status as a global technology and business leader.
