Elon Musk has reached a historic milestone, becoming the first individual to amass a net worth exceeding £314 billion ($400 billion).
This leap comes after SpaceX executed a significant insider share sale, boosting the company's valuation to £275 billion ($350 billion). Musk's stakes in SpaceX and Tesla remain pivotal to his extraordinary wealth.
SpaceX Valuation Soars to New Heights
The recent insider share sale at SpaceX enabled employees to sell shares at £145 ($185) each, marking a sharp increase from £88 ($112) just a few months ago.
This transaction valued the private aerospace firm at £275 billion ($350 billion), a 40% rise from its previous estimates and nearly double its worth a year ago.
The company, alongside its top investors, plans to buy up to £980 million ($1.25 billion) worth of employee shares, with SpaceX itself purchasing £392 million ($500 million) of the total.
Musk, who holds a 42% stake in SpaceX, saw his personal fortune swell by £39 billion ($50 billion) following the share sale.
The move reflects strong investor confidence in SpaceX's ambitious projects, including the Starship spacecraft and the Starlink satellite network, which aim to revolutionise space exploration and global connectivity.
In response to the sale, Musk remarked on X (formerly Twitter), "Almost no investors wanted to sell shares even at a $350B valuation! SpaceX reduced the amount of shares it bought back from employees to allow some new investors in."
Tesla's Role in Musk's Net Worth
Tesla's stock performance has also played a critical role in bolstering Musk's net worth. The electric vehicle giant's shares have surged by more than 70% year-to-date, closing at £333 ($425) on 11th December.
According to filings with the US Securities and Exchange Commission, Musk owns 20.5% of Tesla, comprising 715 million shares.
However, only 13% of these shares—equivalent to 411 million—are directly held by Musk, with the remainder tied to options from his 2018 compensation package.
Musk's stake in Tesla has been diluted in recent years due to the sale of shares to finance his acquisition of X.
However, the billionaire has expressed intentions to increase his stake in Tesla to secure 25% voting control, citing concerns over the risk of a "takeover by dubious interests."
This move underscores Musk's commitment to the company's leadership in developing AI features and advanced robotics.
Resilience Amid Legal and Financial Challenges
Musk's wealth surge comes despite challenges, including a recent Delaware Chancery Court ruling that rejected his 2018 Tesla CEO pay package, which would have been worth £78 billion ($100 billion) today. The court's decision came despite approval from Tesla shareholders.
The SpaceX share sale provides a boost in liquidity without requiring a traditional fundraising round, further solidifying its financial stability.
Analysts view this development as a testament to the growing investor confidence in SpaceX's innovative ventures.
Elon Musk's remarkable wealth trajectory is driven by his strategic stakes in SpaceX and Tesla. His 42% ownership of SpaceX and 20.5% stake in Tesla have positioned him as the wealthiest individual on the planet.
Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.
