Elon Musk, the world’s richest person, saw his net worth soar by $33.5 billion on October 24, after Tesla Inc. recorded its largest share jump in over a decade.
Tesla’s stock rose by 22% following the announcement of the company’s third-quarter earnings, which revealed the electric vehicle (EV) giant’s most profitable quarter since mid-2023.
Musk’s net worth now stands at $270 billion, according to the Bloomberg Billionaires Index, placing him $61 billion ahead of Amazon founder Jeff Bezos.
This surge puts Musk on track to potentially become the world’s first trillionaire by 2027, according to a report by Informa Connect Academy, thanks to Tesla’s market dominance and future-focused initiatives.
Tesla’s rally sparks trillionaire speculation
Tesla’s recent performance has fueled speculation that Musk may reach the trillion-dollar milestone within the next few years.
Informa’s report notes that Musk’s wealth has grown by an average of 110% annually, making him the leading candidate to achieve trillionaire status.
Tesla’s value, now estimated at $710 billion, plays a central role in Musk’s financial success.
With a 13% stake in the automaker, Musk’s Tesla holdings are currently valued at $93 billion.
Additionally, Musk holds 303 million stock options linked to a controversial compensation package that has faced legal and shareholder scrutiny.
“Musk has positioned himself to achieve new heights as Tesla capitalizes on self-driving technology, robotaxis, and future EV developments,” said Dan Ives, senior equity analyst at Wedbush Securities.
Rising competition and setbacks ahead
Despite Tesla’s impressive performance, challenges remain. The company faces increasing competition, particularly from lower-cost rivals in China.
Tesla’s stock experienced a significant decline in 2022 due to softening demand and multiple vehicle recalls, including a software issue with its Autopilot feature.
Musk also recalled past difficulties, highlighting Tesla’s near-bankruptcy in 2008.
“We were days away from insolvency before securing a critical loan,” he shared.
His controversial actions, such as the “funding secured” scandal in 2018, have further complicated Tesla’s journey.
Musk continues to diversify his ventures, with stakes in SpaceX, tunnel-digging firm The Boring Company, AI startup xAI, and Neuralink, a brain-chip implant company.
Tesla’s outlook and Musk’s future vision
Tesla’s positive Q3 earnings have renewed investor optimism.
Musk anticipates 30% growth in vehicle sales and revealed that the company’s much-anticipated Cybertruck project generated its first quarterly profit.
Speaking after the earnings release, Musk forecasted the rollout of Cybercab robotaxis in 2026, with plans to manufacture 2-4 million units annually.
“My prediction is Tesla will become the most valuable company in the world, and probably by a long shot,” Musk told investors via webcast.
Meanwhile, Musk’s ownership of SpaceX, valued at $210 billion, adds further weight to his financial empire.
His ventures also extend to the controversial social media platform X (formerly Twitter), which has drawn criticism for its content policies and Musk’s erratic posts.
Path to a trillion-dollar fortune
While Tesla’s growth positions Musk as a frontrunner in the race to become the first trillionaire, the future remains uncertain.
In addition to competition from Nvidia’s AI boom and potential challengers like Meta’s Mark Zuckerberg and Indian billionaires like Gautam Adani, and Mukesh Ambani, Musk’s wealth will largely depend on Tesla’s continued success.
“It’s much harder to restart operations than to shut them down, so doing this right is critical,” Musk emphasized regarding Tesla’s future.
With a big backlog of orders, the company remains optimistic but cautious in its strategy.
Though Musk has faced numerous obstacles over the years, including regulatory challenges and operational hurdles, his determination has helped Tesla and his other ventures thrive.
As Ives noted, “Musk has faced setbacks, but he has a knack for turning things around—he’s the Teflon kid.”
The coming years will determine whether Musk can sustain his momentum and reach unprecedented financial heights, cementing his legacy as both an industry pioneer and potentially the world’s first trillionaire.
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