Elon Musk's net worth just hit $500bn - this is why

Elon Musk has become the first person ever to reach a net worth of more than $500bn (£371bn).

The milestone was boosted by a recovery in Tesla stock and soaring valuations in the tech entrepreneur's other startups this year, according to the Forbes billionaires index. Tesla shares had a bumpy start to 2025, but climbed as investor optimism grew when Musk took a step away from his role in the Trump administration and refocused on his businesses.

Last month, Tesla board chair Robyn Denholm said Musk was once again "front and centre" at the company after spending several months at the White House. Musk's wealth is heavily linked to Tesla, where he owned over a 12.4% stake as of 15 September.

The company's shares have gained more than 14% year to date and closed 3.3% higher yesterday - boosting Musk's net worth by over $6bn (£4.4bn). Musk has bought approximately $1bn (£740m) worth of shares, signalling strong confidence in Tesla's future as it shifts focus from being just an automaker to becoming a leader in AI and robotics.

Read more from Sky News:Lawsuit over Nirvana album cover thrown out againFirm linked to Tory peer breached £122m PPE contract However, declining vehicle sales and ongoing pressure on profit margins have weighed on the stock, causing it to be among the weakest performers within the "magnificent seven" group of major tech companies. Musk's artificial intelligence startup xAI and his rocket company SpaceX have both seen their valuations increase this year.

According to Pitchbook data, xAI was valued at $75bn (£55bn) as of July. Bloomberg News reported in July that SpaceX was planning to raise funds and sell insider shares in a deal valuing the company at approximately $400bn (£296bn).

Oracle founder Larry Ellison ranks second on the Forbes rich list, with a net worth of about $350.7bn (£260bn) as of Wednesday..