Elon Musk ended 2024 with an extraordinary increase in wealth, becoming one of the biggest beneficiaries of the year’s historic rise among the world’s richest billionaires.
Elon Musk, already the world’s richest person, saw his net worth increase by a staggering $213 billion this year alone, thanks largely to his close ties to President-elect Donald Trump and the strong performance of Tesla, SpaceX, and his other ventures.
Bloomberg’s Billionaires Index predicts that the combined net worth of the world’s 500 richest people will reach an all-time high of $10 trillion by 2024.
This milestone represents a $1.5 trillion increase in just 12 months, with tech titans like Mark Zuckerberg, Jensen Huang, and Larry Ellison gaining billions. Musk, on the other hand, emerged as the standout figure, accounting for more than 13% of the overall wealth increase among the top billionaires.
Musk’s net worth at the end of the year was $442.1 billion, up $213 billion from the beginning of 2024.
The gap between Musk and Jeff Bezos, the world’s second-richest person, has reached a record $237 billion, highlighting Musk’s financial dominance. According to Bloomberg, this is the largest disparity ever recorded between the top two billionaires.
The Trump effect on billionaire wealth
Musk’s fortune skyrocketed following Trump’s re-election to the presidency. Musk’s public and financial support for Trump’s campaign not only boosted his political standing, but also increased investor confidence in his companies.
Tesla’s stock rose more than 65% in the weeks following Trump’s election victory, fueled by optimism about Trump’s promises to streamline autonomous vehicle regulations and reduce competition from Chinese electric vehicle manufacturers.
The broader billionaire class also received significant windfalls, as Trump’s victory fueled market optimism and increased valuations across sectors. The S& P 500 increased by more than 23% in 2024, driven by tech behemoths known as the “Magnificent Seven,” which included Meta and Nvidia.
It had previously included Tesla, but the company was eliminated in October when Broadband took its place. These companies combined to account for more than half of the Bloomberg index’s total gains.
In the five weeks following Trump’s victory, billionaires tracked by Bloomberg’s index saw their wealth increase by $505 billion, accounting for 34% of their total gains this year.
Trump’s pro-business policies and promises to reduce regulatory constraints on the tech and energy sectors have fueled optimism, particularly for Musk’s ventures.
Musk’s friendship with Trump also led to more direct opportunities.
The president-elect’s endorsement of SpaceX’s Mars missions, as well as his vocal support for Musk’s AI startup, xAI, prompted additional investments and government contracts. SpaceX, now valued at $350 billion following a series of insider share sales, has received additional support from institutional investors betting on Musk’s growing influence in Washington.
A year of unprecedented gains
Aside from Musk, other tech billionaires rode the wave of market optimism. Nvidia’s Jensen Huang increased his fortune by $76 billion as the company’s stock nearly tripled, fueled by the ongoing artificial intelligence boom.
Bloomberg reported that Mark Zuckerberg’s wealth increased by $81 billion despite Meta facing significant regulatory challenges, including a $841 million antitrust fine from the European Union.
Crypto billionaires reaped the benefits of Trump’s victory. Bitcoin reached $100,000 for the first time, boosting the fortunes of figures such as Binance’s Changpeng Zhao and Coinbase cofounder Brian Armstrong.
Zhao’s net worth increased by 60% to $55 billion, while Armstrong’s grew by more than 50% to $11.1 billion.
However, not all billionaires succeeded. French luxury magnates Bernard Arnault and Francoise Bettencourt Meyers suffered losses totaling $71 billion as demand for high-end goods fell, particularly in China. Carlos Slim and other Latin American billionaires have also struggled with currency depreciation and political shifts.
Musk’s political gambit pays off
Musk’s aggressive support for Trump’s campaign, with a reported contribution of more than $130 million, demonstrated his willingness to combine his business ambitions with political alliances.
Musk’s influence extended beyond financial contributions, with frequent appearances at Trump rallies and direct involvement in shaping policy discussions on artificial intelligence, space exploration, and clean energy.
Musk is also expected to take on a formal role in the Trump administration. He has been appointed to co-lead the newly formed Department of Government Efficiency (DOGE), which aims to cut $2 trillion in federal spending. This position solidifies Musk’s role as a key player in Trump’s economic agenda.
Musk’s involvement in politics carries risks. His ties to Trump have sparked concern, with critics warning of potential conflicts of interest, particularly as Musk’s companies win lucrative government contracts.
Nonetheless, for Musk, the rewards have far outweighed the risks, with 2024 being his most financially successful year yet.
As the world’s richest people become even wealthier, Musk’s meteoric rise reflects not only the dominance of tech billionaires, but also the changing intersection of business and politics.
It remains to be seen whether Musk’s close relationship with Trump pays off in the long run, but for the time being, the CEO of Tesla and SpaceX stands alone at the top of the global wealth ladder.
