According to a recent report from the Informa Connect Academy, Elon Musk, founder of the electric car manufacturer Tesla, is expected to become the world’s first trillionaire by 2027. Among the world’s billionaires, Musk’s assets come closest to reaching this 13-digit milestone, and his wealth continues to grow.
CNBC reported on October 12th that the Bloomberg Billionaires Index shows Musk’s net worth was around $28.5 billion at the beginning of 2020. By the end of that year, his net worth was around $167 billion; as of September this year, his net worth is approximately $265 billion, once again making him the world’s richest person, surpassing Meta CEO Mark Zuckerberg by $50 billion. The third spot is occupied by Amazon founder Jeff Bezos.
The primary driver of Musk’s wealth is Tesla’s stock, which saw significant growth during the COVID-19 pandemic. Tesla’s stock price hovered around $30 per share in January 2020. By January 2021, it had skyrocketed to nearly $300 per share.
However, Tesla’s stock often experiences sharp fluctuations due to market sentiment, but Musk seems to consistently benefit from these fluctuations. Tesla continues to maintain a leading position in the electric vehicle sector and is expanding its market in areas such as autonomous driving and energy storage.
SpaceX’s space exploration projects also contribute to Musk’s increasing wealth. These projects have longer return cycles and even significant uncertainties, but the capital markets remain optimistic about their future. Additionally, Musk’s involvement in various cutting-edge technology sectors provides more stable sources of wealth growth.
James Pethokoukis, an economic policy analyst at the American Enterprise Institute, told CNBC, “If you look at the wealthiest people in the United States, whether it’s Elon Musk or Jeff Bezos, you’ll find that the reason people become super rich is that they founded a company and developed that company.”
“The reason companies continue to grow is that they produce things that people want and find valuable,” Pethokoukis added.
Wealthy individuals typically invest a larger proportion of their assets in the stock market, while middle-income families often allocate more wealth into real estate.
According to Federal Reserve data, as of mid-2024, the wealthiest 1% of Americans own nearly 50% of U.S. stocks.
In 2022, approximately 58% of American households directly or indirectly hold stocks through passive investments like retirement accounts.