Elon Musk regained the status of a trillionaire on Monday, according to the Bloomberg Billionaires Index. In a single day, his estimated fortune gained $65.4 billion to reach $1.04 trillion. This surge is mainly explained by the rise of SpaceX and Tesla, two companies which also have another thing in common: they hold bitcoin.
In brief
- Elon Musk’s fortune gained $65.4 billion on October 5, reaching around $1.04 trillion.
- Since its August low, SpaceX has rebounded 58%, while Tesla delivered more than 486,000 vehicles in the third quarter.
- SpaceX and Tesla account for more than 98% of Musk’s fortune and together hold nearly 30,000 bitcoins.
Two companies concentrate his fortune
To understand this progression, you just need to look at two participations: SpaceX and Tesla. They alone represent more than 98% of the estimated fortune of Elon Musk, who heads both groups.
Therefore, the gain recorded on Monday does not correspond to new income. It mainly comes from the increase in the value of its holdings. The phenomenon works in both directions. This summer, SpaceX’s decline wiped out $35 billion in twenty-four hours.
Since its August low, SpaceX has rallied 58%, including 13% since the start of October. For its part, Tesla benefited from quarterly deliveries higher than forecasts, with more than 486,000 vehicles delivered in the quarter ended at the end of Septemberdespite a decline of 2% over one year.
Over twelve months, Musk’s fortune now shows an increase of 132.4%. However, it had lost more than 600 billion dollars since its peak reached at the end of July.
Bitcoin enters the equation
Added to this exposure to stocks is that to bitcoin. SpaceX’s initial public offering published in June notably revealed a position more than twice as high as the estimates of on-chain trackers.
Its latest quarterly report reports 18,712 bitcoins as of June 30. SpaceX acquired them for $661 million, while their market value reached around $1.1 billion.
Tesla also maintains a large reserve, with 11,509 bitcoins. This position dates back to the $1.5 billion purchase made in 2021, before the sale of approximately 75% of bitcoin in 2022.
A fortune very sensitive to the markets
This impressive fortune, however, remains very volatile. Musk does not hold $1.04 trillion in cash: most of it is based on the valuation of his holdings. Therefore, each significant move by SpaceX or Tesla can quickly change its estimated wealth.
Investors are therefore watching both companies closely. ARK Invest, for example, took advantage of the July correction to buy SpaceX shares. To better understand his career, Tremplin.io also devotes a portrait to Elon Musk.
The next important deadline will arrive on October 21, with the publication of Tesla’s quarterly results. Until then, SpaceX’s movements will remain decisive. At the beginning of August, the stock had already jumped 16% despite the release of 911.5 million shares. For Musk, the milestone of 1,000 billion has therefore been crossed again. But, given the composition of its assets, it could also quickly be overtaken in the other direction.
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