In historic first, Elon Musk’s net worth skyrockets to $447 billion | What's behind wealth surge?

Billionaire entrepreneur Elon Musk has become the first person in history to surpass a net worth of $400 billion, cementing his position as the world’s richest individual, according to the Bloomberg Billionaires Index.

The latest surge in Musk’s wealth was driven by an insider share sale of his privately held space technology company, SpaceX, which added around $50 billion to his fortune. His net worth was further boosted by Tesla Inc. shares climbing to an all-time high $424.77, pushing Musk’s estimated net worth to $447 billion.

Amazon founder Jeff Bezos is distant second with $249 billion in net worth, followed by Mark Zuckerburg at $224 billion, Oracle co-founder Larry Ellision at $198 billion, and Bernard Arnault at $181 billion.

A separate billionaire index tracked by Forbes pegs Musk's net worth at about $374 billion.

Musk’s financial empire is diversified across several high-profile ventures. His stakes in Tesla, SpaceX, and his artificial intelligence startup xAI form the backbone of his wealth.

The billionaire’s SpaceX holdings were valued at $82 billion before the recent share sale, while xAI added another $25 billion to his portfolio.

Musk's growing influence in incoming Trump's administration

Elon Musk’s fortune has skyrocketed since the November 5 presidential election, with President-elect Donald Trump’s victory boosting the billionaire’s wealth as Tesla shares surged nearly 70%. The rally is believed to be on the optimism about federal policies potentially favouring the electric vehicle maker.

The billionaire is set to co-chair the Trump administration’s newly created Department of Government Efficiency. Despite its name, the department is not an official federal agency but will provide recommendations on reducing government spending.

During a Capitol Hill visit, Musk and entrepreneur Vivek Ramaswamy reportedly issued warnings to Republican lawmakers hesitant to embrace their cost-cutting proposals.

“Elon and Vivek talked about having a naughty list and a nice list for members of Congress and senators and how we vote and how we’re spending the American people’s money,” Associated Press quoted US Representative Marjorie Taylor Greene as saying.

Musk donated approximately $200 million to America PAC, a super PAC targeting Trump voters in battleground states, all of which Trump won. He also contributed $20 million to RBG PAC, which ran ads portraying Trump as unlikely to sign a national abortion ban.

Musk’s RBG PAC contributions, invoking the initials of late Supreme Court Justice Ruth Bader Ginsburg, were revealed in post-election campaign filings on Thursday.

As Musk’s political profile grows, so does his sway within Trump’s team. Allies of the billionaire, including venture capitalist David Sacks as the “White House A.I. & Crypto Czar” and SpaceX collaborator Jared Isaacman as NASA chief, are poised to join the administration.