Edson Baraukwa | Africa Guardian
South Africa-born entrepreneur Elon Musk, CEO of Tesla and SpaceX, has seen his net worth soar to over $440 billion (R7.8 trillion), according to the Bloomberg Billionaires Index. This milestone cements Musk as the world’s richest individual and places his fortune above South Africa’s Gross Domestic Product (GDP), which stood at $377.78 billion in 2023, per the World Bank.
GDP, a key indicator of economic health, measures the monetary value of all goods and services produced within a country over a specific period. Musk’s wealth now eclipsing his home country’s GDP underscores the astronomical growth of his businesses.
A Wealth Surge Powered by SpaceX
Musk’s recent jump in wealth was propelled by a SpaceX transaction in which insiders and investors agreed to purchase up to $1.25 billion in shares. This deal valued the aerospace company at approximately $350 billion and boosted Musk’s personal wealth by $50 billion, bringing his total to $440 billion.
The Tesla Effect
Musk’s fortune, largely tied to Tesla’s surging stock price and SpaceX’s valuation, received a significant boost following the U.S. presidential election last month. Tesla shares have climbed 65% since November, reflecting investor confidence and strong market performance.
Controversial Political Ties
Musk’s relationship with former President Donald Trump has drawn attention, particularly due to his contributions of $270 million to Trump’s campaign and his appointment as co-head of the Department of Government Efficiency (DOGE). This role is designed to streamline federal spending and cut regulatory red tape, potentially benefiting Musk’s business interests.
Musk’s close ties to Trump have raised concerns about possible favoritism, including reduced regulations for Tesla and the elimination of tax credits that could disadvantage competitors in the electric vehicle market.
By the Numbers
Forbes’ Real-Time Billionaires List offers a slightly lower estimate of Musk’s net worth at $374.9 billion, highlighting the variability in wealth assessments. Meanwhile, Trump’s net worth is estimated at $6.72 billion, placing him 472nd on the global rich list.
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