Elon Musk is heading towards securing the title of the globe's initial billionaire with a trillion-dollar fortune.
Elon Musk's business triumphs have catapulted him into being one of the world's most influential and contentious figures. At this point, Musk is the wealthiest individual globally, with a fortune estimated to be around $248 billion.
There's a chance Musk could become the first individual on the planet to amass a trillion dollars, a milestone Informa Connect Academy predicts he'll hit by 2027.
Informa points out that Musk's net worth has been expanding at an exceptional rate of 110% annually, making him the front-runner to achieve the $1 trillion mark before anyone else.
However, Musk isn't the only one eyeing this millionaire milestone.
If the soaring success of Nvidia continues, its CEO, Jensen Huang, could join the trillionaire club in 2028, according to Informa. Currently, Huang has a net worth of $104 billion, Bloomberg reports.
Another billionaire with dreams of reaching the trillion-dollar mark is India's Gautam Adani.
As for Musk, whether he hits the trillion-dollar mark – or even makes it that far – depends heavily on the future of his most significant accomplishment: Tesla.
Tesla, founded by Musk, is now the world's most valuable automaker, with a market value of approximately $710 billion. This puts it ahead of corporations like Coca-Cola, Bank of America, and Boeing combined.
With a near 13% stake in Tesla, worth nearly $93 billion at current prices, Musk's Tesla shares are his most valuable asset. Besides this, Musk also holds 303 million stock options tied to his compensation plan, which was initially tossed out by a judge but later revived and accepted by shareholders.
Should Tesla continue to flourish, it could propel Musk's fortune past the trillion-dollar mark.
Dan Ives, senior equity analyst at Wedbush Securities, remarked to CNN that Musk appeared poised to achieve remarkable heights in the coming years as Tesla taps into the potential of self-driving, robotaxis, and the future of electric vehicles.
Yet, there are no guarantees.
Tesla faces stiff competition, especially from more affordable Chinese rivals. The automaker has experienced challenges, such as weaker sales causing the stock to plummet two-thirds in 2022. Tesla also issued multiple vehicle recalls, including a software recall affecting nearly all its vehicles on U.S. roads due to an issue with the Autopilot feature.
Back in 2008, Tesla came close to filing for bankruptcy before securing a final-minute loan to stay afloat.
Then, in 2018, Musk found himself in hot water with regulators and investors, after claiming he had "funding secured" for a $420-a-share deal to privatize Tesla. Musk was forced to pay millions in fines and legal fees and relinquish his role as executive chairman as a result.
Ives commented that despite facing numerous challenges with Tesla, Musk managed to turn the company around.
“Musk has had his back against the wall many times with Tesla, and although many haters and skeptics have their doubts, he always manages to pull through,” Ives said. “He's the Teflon kid.”
Regardless, Tesla is not Musk's only asset. He also has substantial holdings in The Boring Company, an infrastructure firm, and xAI, an artificial intelligence startup.
And then there's SpaceX, the private company that made history by executing the first-ever spacewalk by non-government personnel, on Thursday.
SpaceX, which is valued at $210 billion, according to Bloomberg, has Musk as its primary shareholder – holding approximately 42% of the company's shares.
Musk also has a stake in Neuralink, a brain chip implant startup aimed at helping individuals with paralysis regain mobility.
Lastly, part of Musk's wealth comes from his most ambitious – and contentious – business venture: social media platform X, which Musk acquired in 2022 after attempting to back out of the initial $44 billion deal.
Since then, X has experienced considerable value loss and has faced criticism for its stance on content moderation and the spread of misinformation, as well as Musk's own antisemitic tweets.
At one point last year, Musk apologized for his "most ridiculous" social media post while simultaneously telling advertisers, "Go f**k yourself."
The success of Tesla, being the world's most valuable automaker with a market value of approximately $710 billion, significantly contributes to Musk's wealth, as he holds a near 13% stake worth nearly $93 billion.
Despite facing challenges with Tesla, including stiff competition and vehicle recalls, Musk's ability to turn the company around continues to impress analysts, such as Dan Ives from Wedbush Securities.
