SpaceX and Tesla shares rally as merger talks fuel investor optimism, lifting the world’s richest man’s fortune above $1tn……
Elon Musk, the world’s richest person, has regained his trillionaire status after his fortune surged by an estimated $88 billion on Wednesday, driven by rising shares of SpaceX and Tesla.
According to Forbes, Musk’s net worth climbed to $1.013 trillion as of 10:30 a.m. on Wednesday, following strong market performances by the two companies in which he holds substantial stakes.
SpaceX shares jumped by more than 10 per cent after the aerospace company reported third-quarter earnings that exceeded analysts’ expectations. Tesla also recorded a gain of more than three per cent ahead of its earnings announcement scheduled for after the market closed on Wednesday.
Investor optimism was further boosted by Musk’s disclosure that SpaceX and Tesla were exploring a possible merger, a development that could reshape the relationship between his major business interests.
Speaking during SpaceX’s earnings call on Tuesday night, Musk said the boards of both companies had established special committees to examine the proposed deal.
He described the potential merger as a “good idea” but cautioned that it was not “a certainty”.
Musk’s fortune remains closely tied to the performance of the two companies, given his ownership of approximately 38 per cent of SpaceX and 11 per cent of Tesla.
SpaceX also reported strong business growth in the third quarter, with revenue increasing by 161 per cent year-on-year. Revenue from its artificial intelligence business rose by 830 per cent, while Starlink’s subscriber base expanded from 1.6 million to 13.6 million during the quarter.
Musk first crossed the trillion-dollar wealth threshold on June 12, following SpaceX’s public listing, becoming the world’s first trillionaire.
However, his stay above the milestone was short-lived. A week later, a sharp decline in SpaceX’s share value reportedly wiped approximately $350 billion off his fortune in what was described as the largest personal wealth loss on record.
Beyond his business ambitions, Musk recently announced plans to give every child in the United States a share in SpaceX next year.
Forbes estimated that distributing shares to approximately 72 million Americans under the age of 18 would cost about $10.5 billion, based on a closing share price of $146.03 recorded on Friday.
His latest wealth surge highlights how movements in the valuations of his companies can rapidly reshape his personal fortune, with the proposed SpaceX-Tesla merger and continued growth in the companies’ businesses likely to remain major points of investor interest.
