Elon Musk close to world’s first trillionaire status as net worth soars to $849 billion

Elon Musk is on the verge of making history as the potential first trillionaire, with his wealth increasingly fueled by ventures in aerospace and artificial intelligence rather than just automotive. Currently, his net worth stands at approximately $849 billion, as reported by Forbes, with SpaceX now representing nearly 66% of his total fortune. In a remarkable comparison, Musk's wealth surpasses that of the next three wealthiest individuals combined, including Google co-founders Larry Page and Sergey Brin, along with Meta's Mark Zuckerberg. The recent increase in Musk's financial standing follows SpaceX's acquisition of his AI and social media firm, xAI, which has been valued at $1.25 trillion post-merger. With an estimated 43% ownership in the newly formed entity, Musk’s personal share alone is valued at over $530 billion, indicating a significant diversification away from his previous Tesla-centric wealth. Tesla has acknowledged this shift in its recent proxy filing, stating that a majority of Musk's wealth is now sourced from other business ventures, underscoring SpaceX's emergence as a pivotal asset. Looking ahead, Musk has revealed intentions to take SpaceX public by 2026, a strategic move that would likely diminish Tesla's contribution to his liquid assets. However, investors might approach the valuation of a company that combines aerospace, satellite operations, and a nascent AI business with caution due to its diverse and challenging market. SpaceX has already secured over $20 billion in contracts from the U.S. federal government, with more anticipated, according to FedScout research. Musk envisions the xAI acquisition as a foundational step toward establishing 'orbital data centers.' Meanwhile, xAI faces scrutiny across Europe, Asia, Australia, and California due to allegations involving its Grok image generator, which reportedly enabled the creation and sharing of deepfake explicit content. Despite this pivot toward space exploration, Musk retains significant financial ties to Tesla. Last year, shareholders approved a compensation package that could be worth as much as $1 trillion, contingent on Tesla achieving certain market capitalisation and operational goals. The first phase of this package is triggered if Tesla attains a market cap of $2 trillion, surpassing its current valuation by approximately $460 billion. Before the xAI merger, Musk controlled about 42% of SpaceX and held a dominant 80% of its voting rights. Currently, his stake in Tesla ranges between 11% and 15% of the total outstanding shares. Tesla’s stock has seen a decline of around 9% this year, amidst ongoing developments in robotaxi technology and humanoid robotics. For Musk to officially claim the title of trillionaire, the combined valuation of his rocket and AI enterprises would need to reach approximately $1.6 trillion, assuming Tesla shares stabilize.