Elon Musk’s Wealth: How He Earns and Spends It

Elon Musk, the wealthiest individual on Earth, has recently grown his influence beyond the tech world. Once a Democrat, the South African-born entrepreneur moved to the U.S. via Canada as a college student. In 2024, Musk became a prominent supporter of Donald Trump’s presidential campaign, donating $119 million to Trump’s re-election efforts. Following Trump’s victory, Musk’s backing paid off: Trump called Musk a "genius" and welcomed him into his inner circle. Musk was appointed co-chair of the newly formed Department of Government Efficiency (DOGE), tasked with reducing waste and simplifying federal regulations.

Musk’s Businesses and Government Ties

Musk’s companies have long-standing connections with the U.S. government, raising questions about conflicts of interest. SpaceX, which Musk owns 42% of, has secured nearly $20 billion in contracts with NASA and the Department of Defense since 2008. Tesla, another of Musk’s ventures, has been under scrutiny for its autopilot technology, linked to multiple crashes and fatalities. Meanwhile, the Federal Communications Commission (FCC) oversees Musk’s social media platform X (formerly Twitter), with Trump recently nominating a Musk ally to lead the FCC.

Despite these concerns, investors seem confident in Musk’s government ties. Tesla’s stock surged after the 2024 election, boosting Musk’s net worth by $70 billion to $334 billion by late November.

Tesla, SpaceX, and Other Ventures

Musk owns about 12% of Tesla, though much of his stake is tied to personal loans. Tesla has also benefited from $8.7 billion in government credits since 2020. Musk’s involvement in SpaceX continues to grow, with the company valued at $210 billion in late 2024. SpaceX’s satellite internet division, Starlink, has faced funding challenges but remains a key part of Musk’s portfolio.

Musk’s artificial intelligence startup, xAI, launched in 2023, has seen rapid growth. Its flagship product, the Grok chatbot, is available to X subscribers, and the company has raised billions from investors, reaching a valuation of $50 billion in 2024.

Other ventures include The Boring Company, which is developing underground transportation tunnels, and Neuralink, which focuses on brain-computer interfaces. Neuralink recently began human trials, with the goal of helping people with paralysis control devices with their minds.

Challenges and Losses

Not all of Musk’s investments have been profitable. His $44 billion acquisition of Twitter (now X) in 2022 has led to significant losses. The company’s valuation plummeted to $9 billion by mid-2024, though it has given Musk control over a powerful social media platform with millions of followers.

Musk has also faced legal and regulatory issues. The SEC fined him $40 million in 2018 for misleading tweets about taking Tesla private and required pre-approval of his tweets by company lawyers. Musk continues to mock the SEC, frequently posting jokes on X.

Philanthropy and Personal Life

Despite signing the Giving Pledge in 2012, Musk’s philanthropic contributions are modest relative to his wealth. He has donated $406 million to charitable causes, less than 1% of his net worth. His Musk Foundation received an additional $7.9 billion in Tesla shares in 2021 and 2022, but actual payouts remain limited.

Musk’s personal life is equally eventful. He has 11 children with three women, including alt-pop artist Grimes. Musk revealed in 2021 that he has Asperger’s syndrome and often uses his platform to discuss his unconventional views.

Looking Ahead

Musk’s influence shows no signs of waning. From his role in Trump’s administration to his expanding business ventures, Musk continues to shape industries and politics alike. While his investments in AI, renewable energy, and space exploration promise long-term innovation, his critics point to potential conflicts of interest and his sometimes erratic public behavior. Whether Musk’s wealth and power will further reshape the world remains to be seen.