Elon Musk, the world’s richest individual, has set a new record for personal wealth, reaching an astonishing $347.8 billion, according to the Bloomberg Billionaires Index. This milestone comes as Tesla’s stock continues its post-election rally, rising 3.8% on Friday, and Musk’s AI startup, xAI, achieves a $50 billion valuation following a successful funding round
A Record-Breaking Year for Musk
Musk’s net worth has skyrocketed by an unprecedented $117.8 billion in 2024 alone, fueled by Tesla’s stock surge and his diversified investments. He now surpasses Amazon founder Jeff Bezos, who holds second place on the Bloomberg Billionaires Index with a fortune of $219 billion. This latest figure also breaks Musk’s previous wealth record of $340.4 billion, set in 2021.
Tesla’s Post-Election Rally
Tesla’s stock has gained momentum following Donald Trump’s victory in the U.S. presidential election, closing on Friday at $352.56. Investors are optimistic about Musk’s close relationship with the president-elect, betting that Tesla could benefit from policies favoring electric vehicles. Tesla’s market capitalization now exceeds $1.1 trillion, surpassing even Warren Buffett’s Berkshire Hathaway.
Mark Malek, Chief Investment Officer at Siebert, commented that Tesla’s stock has a “premium” due to Musk’s visible support for Trump’s campaign. Musk’s super PAC reportedly spent $200 million to aid Trump’s return to office, further aligning Tesla’s prospects with the new administration.
The Role of xAI in Musk’s Wealth Surge
In addition to Tesla’s performance, Musk’s wealth received a significant boost from his artificial intelligence startup, xAI. The company recently raised $5 billion in a funding round, pushing its valuation to $50 billion. This further diversifies Musk’s portfolio and solidifies his position as a leader in the AI space.
Should Investors Buy Tesla or xAI?
Tesla’s stock, up 42% this year, remains below its all-time high of $410 set in November 2021. However, its current upward trajectory, coupled with Musk’s influence in the political sphere, suggests further potential gains. Meanwhile, xAI’s impressive valuation positions it as a rising player in the AI sector, appealing to forward-looking investors.
Despite these opportunities, both Tesla and xAI come with risks. Tesla’s stock price could face volatility if investor sentiment shifts or political dynamics change. xAI, as a relatively new venture, carries inherent uncertainties typical of startups
Conclusion
Elon Musk’s record-breaking wealth highlights his ability to capitalize on both established ventures like Tesla and emerging opportunities such as xAI. For investors, Tesla’s continued growth and xAI’s potential make them intriguing prospects, albeit with risks.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct thorough research before making investment decisions.
