Elon Musk's net worth exceeded $500 billion on Tuesday, driven by a rally in Tesla shares amid positive U.S.-China trade developments. The milestone marks the second time Musk has reached this level, following an earlier achievement this month. Tesla benefited from cooling trade tensions, with shares rising as negotiations progressed toward a potential deal.
Tesla's stock climbed 2.2% to around $462.50 on Tuesday afternoon, building on a 4.3% gain from Monday. This uptick came after President Donald Trump indicated that the U.S. and China would likely secure a trade deal before his meeting with President Xi Jinping. Treasury Secretary Scott Bessent noted Sunday that Trump's earlier threat of 100% tariffs on China was "effectively off the table" following productive talks, which fueled a broader market rally and record highs for the Dow Jones Industrial Average and S&P 500.
Musk, holding about 12% of Tesla, saw his fortune rise by $6.6 billion to an estimated $501.7 billion, making him the world's richest person and the first ever to hit $500 billion twice. Tesla's strong performance in China, its second-largest market, supported the gains, with 2024 sales there increasing 8.8% to a record 657,000 vehicles.
The rally also coincided with a promotional event in Times Square, where Tesla showcased its Optimus humanoid robot handing out candy to passersby during a Cybercab demonstration. The robot, plugged in and demonstrating improved dexterity, briefly dropped bags but quickly recovered, drawing investor attention and contributing to the stock's 2.5% afternoon jump.
However, challenges persist. Tesla's third-quarter revenues topped $28 billion on record deliveries, but earnings per share of $0.50 missed estimates of $0.56, partly due to expiring federal EV tax credits. Tesla Chair Robyn Denholm warned shareholders in a Monday letter that rejecting Musk's proposed $1 trillion pay package could lead to his departure, stating, "Without Elon, Tesla could lose significant value, as our company may no longer be valued for what we aim to come." Some advisory firms, including Glass Lewis and Institutional Shareholder Services, have recommended voting against the package.