Elon Musk ended 2024 with a significant financial milestone, amassing a fortune of $421.2 billion, a staggering $188 billion more than Amazon’s Jeff Bezos, the world’s second wealthiest individual.
The previous year saw Musk’s wealth increase by an extraordinary $170 billion, fueled by the sharp rise in valuations of companies like Tesla, SpaceX, and his new venture, xAI. Starting the year with $251 billion, Musk’s financial trajectory climbed rapidly, propelling him to a historic position as the first person to surpass $400 billion in net worth, a threshold he had previously approached in 2021 when his wealth briefly exceeded $300 billion.
Musk’s unprecedented financial gap with Bezos marks a significant moment in financial history, doubling the prior record set in 2021 when Musk was $72 billion ahead of Bernard Arnault, then the world’s second richest person. However, Musk’s journey in 2024 was not without hurdles. In January, a Delaware judge voided his 2018 deal involving Tesla stock options worth approximately $56 billion, temporarily allowing Arnault to overtake him in wealth. Nevertheless, Musk reclaimed his top position by May, as xAI’s valuation soared, augmenting his fortune to $209.5 billion.
Despite the challenges, Musk’s fortune continued to climb, bolstered by another funding round for xAI in December, which added a remarkable $6 billion at a $50 billion valuation, enhancing his stake significantly. Meanwhile, SpaceX’s valuation surged to $350 billion, substantially increasing the value of Musk’s 42% stake to $147 billion. Moreover, Tesla’s shares reached an all-time high, with a notable 93% increase by the end of the year, largely credited to Musk’s involvement in the re-election campaign of Donald Trump and his subsequent appointment as co-head of the Department of Government Efficiency.
The soaring stock values, combined with Musk’s strategic financial decisions, solidified his position at the top of the financial hierarchy despite a late-year setback. On January 2nd, Tesla reported lower vehicle deliveries for 2024 compared to the previous year, resulting in a 6% dip in stock price and a reduction of $15 billion from Musk’s overall wealth. Yet, even with this decline, Musk remained the wealthiest person on the planet, with his net worth estimated at nearly $406 billion, maintaining a $172 billion lead over Bezos.
Musk’s financial success in 2024 underscores the dynamic and often unpredictable landscape of global wealth. His ability to recover from financial setbacks and emerge with a record-breaking fortune highlights the volatile nature of financial markets and entrepreneurial ventures.
Source: Forbes
