Tesla Inc. co-founder Elon Musk’s net worth has surpassed $300 billion for the first time in nearly three years, driven by soaring company shares as investors speculate that his close relationship with President-elect Donald Trump could benefit Tesla. As of Friday, the 53-year-old’s wealth now exceeds the annual GDP of countries like Finland and Chile and surpasses the market value of corporations such as PayPal and Netflix.
Following Trump’s election, Musk has seen the greatest surge in wealth of anyone on the Bloomberg Billionaires Index. He invested tens of millions to support Trump’s campaign, leveraged his social media platform, X, to promote Trump, and participated in campaign rallies. Musk also donated to a pro-Trump super PAC and spent election night at Trump’s resort in West Palm Beach, Florida.
A strong earnings report by Tesla in mid-October pushed Musk’s net worth above $300 billion, and his company’s stock has surged 28% since Tuesday’s close. That has left him $13 billion richer than Oracle chairman Larry Ellison, who was the second-richest person in the world as of Wednesday and is $70 billion ahead of Microsoft founder Bill Gates.
Investors are betting that a Trump administration will reduce the regulatory burdens on Tesla, which is trying to develop self-driving cars and help it boost production. Musk has said he wants to make 100,000 electric vehicles annually by 2022, double what the company currently produces. He has also floated the idea of creating a “government efficiency commission” that would focus on cutting red tape, which slows down electric vehicle rollout.
However, a government role could also pose risks for Musk and his businesses. For one thing, it would put him at the whims of unpredictable leaders and force him to choose between his business interests and his new political role.
Trump has praised Musk’s efforts to advance his space exploration and electric transportation vision. He has suggested installing the Tesla CEO in a new role as a kind of efficiency czar. He has also pledged to ease the strict federal rules that hinder Tesla’s drive to mass-produce electric vehicles.
Musk, born in South Africa and can’t run for president, has vowed to continue working with Trump on issues important to him and his businesses, such as immigration reform. However, some experts warn that his vast influence over the political world could threaten democracy. If his business interests and new political role conflict, that could be dangerous for his companies and the economy.
