Elon Musk has reclaimed his position as the world’s wealthiest individual, following a brief period where he was surpassed by another billionaire on Wednesday, September 10.
Thanks to the explosive growth in the electric vehicle sector, his purchase of what was formerly known as Twitter (now X), and ongoing developments at SpaceX, Musk has consistently topped global wealth rankings for several years.
Musk’s dominance on these lists has been a longstanding trend, and many believed it would remain unchanged for the foreseeable future.
When you own some of the world’s largest companies, maintaining the top spot on the rich list seems almost inevitable, doesn’t it?
However, economic analysts were taken by surprise this week when a new individual briefly claimed the title of the richest person.
The title of the world’s richest person can shift quickly due to volatile financial figures, as demonstrated on Wednesday morning when Larry Ellison momentarily took over the top spot from Musk.
Ellison’s wealth soared to an impressive $393 billion, surpassing Musk’s $385 billion, according to the Bloomberg Billionaires Index.
This surge in Ellison’s wealth was attributed to Oracle’s stock price increasing by an impressive 40 percent, which significantly bolstered Ellison’s net worth, considering the company constitutes a substantial portion of the 81-year-old’s wealth.
Ellison’s fortune reportedly increased by $101 billion after Oracle’s quarterly results exceeded expectations, allowing him to overtake the Tesla CEO.
Nonetheless, by the end of Wednesday, Oracle’s share price had dropped, allowing Musk to regain his title as the world’s richest person.
This isn’t Musk’s first time being dethroned. Since initially becoming the world’s wealthiest individual in 2021, he has temporarily lost the title to LVMH CEO Bernard Arnault and Amazon founder Jeff Bezos.
Musk’s current staggering net worth comes after Tesla’s board of directors proposed a new compensation package that could potentially grant him up to 423.7 million additional shares over the next decade, contingent upon shareholder approval.
These shares could be valued at $148.7 billion based on Tesla’s closing price last Friday, and in an optimistic scenario, Musk might earn close to $1 trillion.
It’s important to note that Musk will only receive these shares if Tesla attains a valuation of $8.5 trillion, which is eight times its current worth.
CNN notes that this is twice the highest valuation ever reached by any company.
While Musk may be anticipating a substantial pay increase, the clear message from Tesla’s board is that his focus needs to be on the company.
The Tesla CEO spent time managing DOGE in the Trump administration earlier this year, and the car company is emphasizing that Musk must prioritize Tesla.
Gene Munster, managing partner at Deepwater Asset Management, stated: “The simple message the board is sending to Elon: ‘We want your attention on Tesla. Implicit in that message is the promise that he’ll have the control he’s been seeking (a 25% stake) and that it will be worth his time.”