topline
Elon Musk's net worth topped $500 billion again on Tuesday, and Tesla shares have risen in recent days as the automaker appears to benefit from intensifying trade talks between the United States and China, which account for more than a fifth of Tesla's sales.
Tesla shares have risen in recent days as trade talks between the United States and China cooled.
Anadolu, Getty Images
main facts
Tesla shares rose 2.2% to around $462.50 as of Tuesday afternoon, following a 4.3% gain on Monday.
President Donald Trump earlier this month threatened to impose 100% tariffs on China after Chinese officials announced trade restrictions on rare earth minerals. He said on Monday that the U.S. and China could “reach” a trade deal before Trump meets with Chinese President Xi Jinping.
U.S. Treasury Secretary Scott Bessent said on Sunday that Trump's tariff threats were “effectively off the table” after a “very good” meeting with trade officials, sparking a broader market rally at the start of Monday that ended with the Dow Jones Industrial Average and S&P 500 closing at record highs.
China is Tesla's second largest market after the United States. Tesla's annual sales in China increased by 8.8% in 2024, reaching a record high of more than 657,000 vehicles.
Forbes Valuation
Musk holds about 12% of Tesla's shares and is the world's richest man, with an estimated wealth of $501.7 billion. His net worth increased by $6.6 billion (1.3%) on Tuesday as Tesla shares continued to rise. Earlier this month, he became the first person ever to be worth $500 billion, and could become the world's first trillionaire if Tesla shareholders approve Musk's $1 trillion compensation package. Several groups opposed Musk's pay package, including Glass Lewis and Institutional Shareholder Services, which recommended Tesla shareholders vote against the pay plan. Tesla Chairman Robin Denholm warned investors in a letter to shareholders on Monday that Musk could leave Tesla if the compensation plan is rejected, claiming, “Without Elon, Tesla could lose significant value because the value of our company may no longer be aligned with our goals.”
Musk has been the world's richest man for nearly 17 consecutive months
Musk became the world's richest man in May 2024, shortly after his xAI raised $6 billion at a pre-money valuation of $18 billion, ahead of LVMH CEO Bernard Arnault. Arnault held the title of world's richest man for about four months after a Delaware judge invalidated Musk's Tesla pay package in January. Since then, Musk has gone largely unchallenged as the first person to be worth $400 billion and $500 billion, although last month, Oracle chairman Larry Ellison came close to Musk's fortune, with his net worth exceeding $110 billion. Oracle's stock price rose 41% on September 10, making Ellison only the second person to top 4,000. Billion dollar mark, his wealth reached a peak of around $405 billion at that time. Despite the historic surge, Ellison still trails Musk by about $31.7 billion.
main background
Tesla reported record vehicle deliveries in its latest quarter despite falling sales in Europe, but its latest earnings report fell short of Wall Street forecasts. Tesla's third-quarter revenue soared to more than $28 billion, driven by record sales, but the automaker reported earnings of $0.50 per share, missing estimates of $0.56. Some analysts attribute the increase in sales to the expiration of federal tax credits for electric vehicle purchases, which Musk said earlier this year could disrupt Tesla's results in future quarters.
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