The net worth of the world's richest person, Elon Musk, increased by $65 billion on Monday, reaching $1.04 trillion, according to the Bloomberg Billionaires Index. This surge is attributed to the rise in the value of his stakes in SpaceX and Tesla. SpaceX shares have gained 13 percent since the beginning of October, while Tesla shares rose by 6.7 percent.
For the first time in three months, the 55-year-old entrepreneur's wealth once again requires 13 digits. Musk became the world's first trillionaire in June after the record IPO of SpaceX, but quickly lost that status. At that time, shares fell amid concerns about the company's overvaluation. By the end of July, the decline in his wealth of more than $600 billion from its peak exceeded the net worth of any other participant in the Bloomberg 500 list, except for Musk himself.
The new growth is fueled by optimism surrounding both companies. On Monday, analysts at Morgan Stanley described SpaceX as one of the cheapest ways to play on the strong optionality of the space and AI sectors. This added momentum to the rally, during which shares of space, AI, and social companies bounced back 58 percent from their August lows. Last week, Tesla reported third-quarter sales that exceeded market expectations.
According to the Bloomberg index, Musk's shares in SpaceX and Tesla account for over 98 percent of his net worth. This highlights how much his wealth relies on the two companies. After the peak earlier this year, the decline was so steep that it surpassed the net worth of any other participant in the Bloomberg 500 list.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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