Elon Musk’s net worth has soared to an estimated sum of $852 billion, becoming the first person to exceed the $800 billion mark. The jump followed SpaceX’s Monday evening announcement of its acquisition of Musk’s artificial intelligence company, xAI.
According to Forbes estimates, the deal increased Musk’s personal fortune by about $84 billion. As a result, his wealth is now hundreds of billions of dollars ahead of every other global billionaire, securing his position at the top of the world wealth rankings.
SpaceX and xAI combine to reshape Musk’s portfolio
The combined SpaceX-xAI entity is worth around $1.25 trillion, according to the merger estimates. SpaceX is responsible for roughly $1 trillion of that figure, with xAI accounting for an additional $250 billion. Musk is estimated to own about 43% of the combined company, which is worth about $542 billion.
Beyond the merged entity, Musk remains significantly exposed to Tesla. He owns roughly 12% of the maker of electric vehicles, valued at $178 billion, and Tesla stock options, valued at an estimated $124 billion. Together, these holdings illustrate that private-company valuations are now more important than Tesla’s place in Musk’s personal balance sheet.
Before the announcement, Musk owned close to 42% of SpaceX. A tender offer in December valued the rocket company at $800 billion, implying that his stake was worth about $336 billion at the time. His individual 49% stake in xAI was worth about $122 billion after a recent funding round valued the AI company at $250 billion.
Private valuations push SpaceX closer to Tesla
The new SpaceX valuation has helped close the gap with Tesla’s public market capitalization, which stands at roughly $1.58 trillion. At $1.25 trillion, SpaceX is currently only about 26% of Tesla’s value, a major change in Musk’s wealth base.
Forbes estimates show SpaceX has become Musk’s most valuable asset. The company generated revenue of about $15 billion last year and a profit of about $8 billion in 2019, according to Reuters. Its business includes orbital launch services for government clients, including for NASA and the U.S. Department of Defense, and the growing Starlink satellite internet network. Starlink now has over 9,000 satellites in orbit and has an estimated 9 million global customers.
Musk’s wealth records stack up
Musk’s rise past $800 billion is the fourth huge wealth milestone he’s achieved in recent months. In October, he became the first person worth $500 billion as Tesla shares rose after his departure from the Department of Government Efficiency under President Trump. By mid-December, private investors valued SpaceX at $800 billion, giving Musk a net worth of $600 billion.
Days later, his wealth surpassed $700 billion when a lower court reaffirmed that Tesla stock options had been invalidated by the Delaware Supreme Court in 2024. The latest merger has now extended that run, pushing Musk some $578 billion ahead of the world’s second-wealthiest individual, Google cofounder Larry Page, whose net worth is estimated at $281 billion.
It is worth noting, SpaceX is rumored to be gearing up for an initial public offering. Such a move would expose its valuation to open-market pricing and heightened scrutiny. A public listing would likely provide better validation of figures, now changing the global rankings of wealth.
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Source: https://www.cryptopolitan.com/elon-musk-crosses-850m-net-worth/
