Elon Musk is Now the World's Richest Person

Elon Musk, the well-known and often debated entrepreneur leading SpaceX and Tesla, has attained a level of wealth previously achieved by only three individuals in the last twenty years: the title of the world’s richest person.

During his ascent to the number one position, Musk has exceeded the net worth of numerous billionaires this year, including Warren Buffet and Bill Gates. He achieved this distinction on Thursday due to Tesla’s stock value increasing by almost 830% since March 2020, coupled with a significant compensation package earned after reaching specific market capitalization and profitability goals. Through this, Musk overtook Jeff Bezos, the founder and CEO of Amazon, who had been the world’s richest person since 2017. 

According to Bloomberg’s Billionaire Index, Musk’s current net worth exceeds $188 billion. Tesla stock continued its strong performance on Thursday, rising by over 5% to $795.75.

In a characteristic display, Musk recognized the achievement with a tweet, commenting on how “strange” it felt and then stating, “well, now back to work.”

The designation of world’s richest person is not the most remarkable aspect of Musk’s situation. It’s the rapidity of his rise to this position. Only a year ago, Musk ranked much lower on the list of the world’s wealthiest people. This year, he experienced a gain of approximately $150 billion, driven by the substantial increase in Tesla’s share price. Musk owns roughly 20% of Tesla’s equity and also holds around $42 billion in vested stock options, as reported in SEC filings.

Historically, the stock has been prone to fluctuations, experiencing significant changes following announcements or financial reports. For instance, in 2018, Tesla’s share price concluded the year with a modest gain of 3.8%. However, the activity between the beginning and end of the year—January 2nd and December 31st—and the resulting 3.8% gain masked a year characterized by instability and dramatic price swings.

Tesla shares demonstrated an upward trajectory throughout 2020. This year, and after just ten years as a publicly traded company, Tesla surpassed Ford, GM, VW Group, and Toyota to become the world’s most valuable automaker based on market value. Tesla’s current market capitalization stands at $757 billion.