How Elon Musk made his money: Inside the journey of world's richest man
Elon Musk, with a net worth of a whopping $385.6 billion, is the richest person in the world
Elon Musk, with a net worth of a whopping $385.6 billion, is the richest person in the world. The 53-year-old is behind several companies like Tesla, SpaceX, xAI, and even Neuralink. He is also a senior adviser to President Donald Trump, leading the Department of Government Efficiency.
Musk's wealth is built through a series of high-stakes ventures and investments. The Tesla chief was born in Pretoria, South Africa before moving to Canada in 1989. He graduated from the University of Pennsylvania and moved to California to pursue business ventures.
Here's how Elon Musk made his money
Journey to Silicon Valley
Musk's father, Errol Musk, was an electromechanical engineer and property developer, while his mother, Maye, was a model and dietitian. The billionaire started coding at 10 years old, when he bought his first computer. Within two years, the 53-year-old made his first sale, selling a video game he created for $500.
Musk left South Africa at 17, moving to Canada in 1989 to avoid mandatory military service. He briefly attended Queen’s University in Ontario before transferring to the University of Pennsylvania, earning degrees in physics and economics in 1995. After enrolling in a physics Ph.D. program at Stanford University, Musk dropped out after two days.
Zip2 and PayPal
Elon Musk's entrepreneurial journey began with Zip2, a software company co-founded with his brother Kimbal in 1995. Zip2 developed online city guides for newspapers. In 1999, Compaq acquired Zip2 for $307 million, netting Musk $22 million for his 7% stake.
In 1999, Musk co-founded X.com, an online payment company. After merging with Confinity, led by Peter Thiel, the company became PayPal. Despite being ousted as CEO in 2000 due to strategic disagreements, Musk remained a major shareholder. When eBay acquired PayPal for $1.5 billion in 2002, Musk’s 11.7% stake earned him $175.8 million after taxes.
SpaceX
Musk founded Space Exploration Technologies Corp. (SpaceX) in 2002, aiming to reduce space travel costs. Initially met with skepticism, SpaceX faced near bankruptcy after three failed rocket launches by 2008. A successful fourth launch and a $1.6 billion NASA contract in 2008 saved the company. Today, SpaceX is valued at $350 billion (December 2024 tender offer), with Musk owning 42%.
Tesla
Musk joined Tesla Motors in 2004 as a lead investor and chairman, becoming CEO in 2008. Founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla aimed to produce electric vehicles (EVs). Musk’s early investment of $6.5 million and subsequent funding rounds were critical during Tesla’s near collapse in 2008, when it was losing $10 million monthly.
Tesla’s stock surged over 1,100% from 2017 to 2022, driven by increased production and profitability.
Read More: Musk’s 100 days at DOGE: From video games to ice cream in the west wing
X and other ventures
In 2022, Musk acquired Twitter for $44 billion, renaming it X. The deal, controversial due to layoffs and increased misinformation, saw X’s value drop to $22.7 billion by August 2024, with Musk’s 79% stake. His artificial intelligence startup, xAI, founded in 2023, was valued at $50 billion in November 2024, with Musk owning 54%. Smaller ventures like Neuralink (brain implants) and The Boring Company (tunneling) have also contributed to Musk's wealth.
Musk’s net worth peaked at $400 billion in December 2024 after Tesla’s stock surged post-Trump’s election, only to drop $126 billion by March 2025 due to Tesla’s 70% profit decline and public backlash over Musk’s political ties.
The billionaire describes himself as ‘cash poor’, with 58% of his Tesla shares pledged for loans up to $3.5 billion.
