Tesla CEO Elon Musk on Wednesday became the first person ever to achieve a net worth of nearly $500 billion, propelled by a rebound in the EV company's shares and surging valuations of the tech entrepreneur's other startups this year.

His net worth stood at $500.1 billion as of 4:15 p.m. ET, according to Forbes' billionaires index.

Musk's fortunes are closely tied to Tesla, where he held a stake of more than 12.4% as of September 15. The stock has risen more than 14% so far this year and closed 3.3% higher on Wednesday, adding more than $6 billion to Musk's net worth.

After a turbulent start to the year, Tesla shares have trended higher as investor sentiment improved on Musk bringing his focus back to his companies. Tesla board chair Robyn Denholm said last month Musk was back "front and center" at the company after several months at the White House.

Just days later, Musk disclosed his purchase of approximately $1 billion worth of the shares, a massive vote of confidence in the future of Tesla as it races to transition from an automaker to an AI and robotics powerhouse.

Still, sagging car sales and persistent margin pressures have hurt the stock, making it one of the worst performers in the "Magnificent Seven" group of megacap tech stocks.

The Tesla board proposed a $1 trillion compensation plan for Musk last month, outlining ambitious financial and operational targets for the CEO while also addressing his demands for a larger stake in the company.

Musk's AI startup xAI and rocket company SpaceX have also scaled their valuations this year.

xAI last had a valuation of $75 billion as of July, according to data from Pitchbook.

CNBC in September reported the company was eyeing a valuation of $200 billion after a fundraise, but Musk said it was not raising any capital at the time.

Bloomberg News reported in July that SpaceX was discussing plans to raise money and sell insider shares in a deal valuing the firm at around $400 billion.

Oracle founder Larry Ellison follows Musk as the second-richest person on Forbes' list, with a net worth of about $350.7 billion as of Wednesday.

Articles tagged with "Net Worth"

Musk becomes first person to hit $500 billion net worth, Forbes list shows