The New Foundations of Elon Musk's Fortune: How Private Companies Took Over 🌌
Key Takeaways
- Private Companies Dominate: Musk's stakes in SpaceX and xAI now outweigh his Tesla holdings, marking a major shift in his wealth composition .
- Tesla's Relative Decline: Despite Tesla's size, it now contributes less than half of Musk's net worth due to growth in his private ventures and Tesla's operational challenges .
- Weath is Complex and Volatile: Musk's net worth is subject to sharp fluctuations based on market conditions, political affiliations, and legal battles over compensation .
- AI and Space Are Key Drivers: The valuations of xAI and SpaceX are surging due to the AI boom and space commercialization, positioning them as future wealth drivers .
- Massive Pay Package Proposed: Tesla's board has proposed an unprecedented $1 trillion stock-based compensation package to incentivize Musk to focus on Tesla .
1. Introduction: The Shifting Sands of Elon Musk's Fortune
It's kinda funny when you think about it—for the longest time, everybody just knew Elon Musk as the Tesla guy. His name was basically synonomous with electric cars, and his wealth, it was all wrapped up in that company's stock. But things change, and wow have they changed. These days, and this might surprise you, most of Elon Musk's fortune now comes from his private companies. It's a huge shift that really shows where his attention and his ambitions are now focused .
We're talking about SpaceX, his rocket company, and xAI, his artificial intelligence venture. Together, these two private companies are now worth nearly twice as much as his stake in Tesla, which is still publicly traded and huge, but just not the main game anymore . It's a story about a guy who's always building the next thing, and right now, the next things are happening outside of the public markets. His wealth is managed by Excession LLC, his family office .
This isn't just about money tho. It's about control. Musk has argued he needs 25% voting control at Tesla to protect its AI work, but at his private companies like SpaceX and xAI, he already has way more control—42% and a majority stake, respectively . That kind of influence lets him steer the ship without having to answer to as many shareholders. It's a different ballgame entirely.
2. Tesla's Declining Share in Musk's Wealth Portfolio
Let's be clear, Tesla is still a giant. It's worth over a trillion dollars, and Musk's 13% stake is still valued at a mind-boggling $140 billion or so. But not that long ago, like back in 2020, around 75% of his wealth was derived from Tesla stock . Now, it's less than half . That's a dramatic change in a pretty short amount of time.
Why the shift? Well, Tesla has had a tough go of it lately. Sales in Europe plunged 40% recently, and they've been falling for months. In the U.S., some buyers have stayed away from Tesla showrooms, apparently angry with Musk's embrace of Donald Trump and his political moves . The company's second-quarter results showed auto revenues dropped 16% compared to a year ago . So while Tesla is still massive, its growth has hit some serious bumps.
At the same time, Tesla's board is super worried about keeping Musk focused. They said it themselves in a recent filing: "A majority of Mr. Musk's wealth is now derived from other business ventures outside of Tesla, and he has more attractive options today than ever before" . So they've proposed this crazy new pay package for him. We're talking about a share award that could be worth $1 trillion if Tesla hits its target valuation of $8.5 trillion . It's a Hail Mary pass to keep his eyes on the prize.
3. SpaceX: The Rising Star in Musk's Empire
If Tesla is the past and present, a lot of people think SpaceX is the future. This company has just been skyrocketing, no pun intended. They're planning an insider share sale that would value the company at a cool $400 billion. That's nearly double what it was worth just last year . At that valuation, Musk's 42% stake would be worth about $170 billion—that's actually more than the value of his current Tesla stake .
What's driving this? SpaceX isn't just about cool rocket launches anymore, tho those are still big. Its Starlink internet broadband service is a huge deal. They've got like 6,800 satellites in orbit and are providing connectivity to 6 million customers. It generated an estimated $9.3 billion in revenue last year . Plus, SpaceX rockets remain the preferred U.S. government contractor for payload launches, with contracts worth $20 billion with the federal government as of late 2024 .
And get this, even after Musk's very public falling out with President Trump earlier this summer, the government didn't really pull their contracts. White House officials apparently explored cancelling some deals with NASA and the Department of Defense, but it didn't really happen . The company's value is just too entrenched. It's become fundamental to American space and communications efforts, and that makes it incredibly valuable.
4. xAI and the AI Revolution: Musk's New Goldmine
Then there's the new kid on the block, xAI. This thing is growing at a pace that's hard to even comprehend. Its valuation has gone from $80 billion at the start of the year to a potential $200 billion in a new fundraising round that's being talked about . That's insane growth. Musk owns more than 50% of the company, so his stake is well over $100 billion and climbing fast .
The company is a clever piece of financial engineering. Musk merged his social media platform, X (formerly Twitter), with xAI in March. On his terms, X is now worth about $33 billion net of debt—which is actually $2 billion more than he paid for it back in 2022. And xAI itself is valued at around $80 billion . Between his stakes in these two sister companies, Musk has an estimated $60 billion of wealth tied up in this combined entity .
But it's not just about money. Musk is in a huge fight in the AI world. He's suing OpenAI and its CEO Sam Altman, alleging they violated the nonprofit's founding contract. OpenAI has countersued, saying Musk is engaged in a "yearslong harassment campaign" . It's a messy, high-stakes battle for the future of AI. xAI's chatbot, Grok, is competing directly with ChatGPT, and Musk is pulling out all the stops to make it a winner. He's even filed lawsuits claiming Apple and OpenAI colluded in the App Store to favor ChatGPT over Grok .
5. Neuralink and The Boring Company: The Smaller Ventures
Beyond the big three, Musk has these other ventures that are smaller but still pretty fascinating. Neuralink is working on brain implant technology. They actually announced in January 2024 that they'd implanted a device in a human patient, which is a big step forward . The company is valued at around $9 billion, but it's still largely a research and development operation. They've been under investigation in the past over allegations of animal abuse in its testing, though the status of that probe under the Trump administration isn't clear . It's a speculative play, but it's pure Musk—aiming for a crazy, sci-fi future.
Then there's The Boring Company. This one is all about tunneling technology to ease urban congestion. They built a test tunnel in Hawthorne, California and are building the Vegas Loop transportation system at the Las Vegas Convention Center . Despite raising over $900 million, it only has one completed project so far . Venture capitalists have valued it at about $5.7 billion . It's not adding a huge amount to his net worth right now compared to SpaceX or xAI, but it's another example of him trying to solve big, infrastructure-level problems.
These companies show the range of Musk's interests. He's not just focused on one industry. He's tackling transportation on the ground, in tunnels, and in space. He's working on connecting human brains to computers and building artificial intelligence. It's this diversified portfolio of futuristic companies that now forms the base of his wealth, not just the car company that made him famous.
6. Political Influence and Wealth Volatility
Here's the thing about having so much wealth tied up in companies—it can be really volatile. And Musk's net worth has been on a wild ride. He became the first person to ever have a net worth above $400 billion in December 2024 . But then, his association with the second Trump administration received some backlash, and his net worth dropped by $126 billion between December 2024 and March 2025 . That's a staggering amount of money to lose.
His political involvement has been a big factor. Musk donated a huge amount—more than $291 million—in the 2024 election cycle, making him the biggest donor. He gave $270 million to a pro-Trump PAC called America PAC and another $20.5 million to a pro-Trump RBG PAC . He was even put in charge of the newly established Department of Government Efficiency (DOGE) on Trump's first day back in office . But then they had a public falling out, and Musk stepped back from that role .
This political rollercoaster has had real-world effects on his businesses. Tesla cars, showrooms, and charging points were damaged in protests in the U.S. and Europe, with things like Molotov cocktails and gunshots being reported . The market has noticed. Tesla stock is down more than 18% in 2025 . So while his private companies are soaring, his public company is getting hit from the backlash against his political moves. It shows how much his personal brand and his companies' fortunes are intertwined.
7. The Trillion-Dollar Pay Package: Tesla's Gambit to Retain Musk
So what does Tesla do when its CEO's attention is being pulled in a dozen different directions? They propose the largest compensation package in history. Seriously, it's unprecedented. Tesla's board has put forward a plan that could grant Musk up to 423 million shares of restricted stock. If Tesla hits its target valuation of $8.5 trillion, those shares would be worth over $1 trillion .
The board's reasoning is pretty clear. They said the package is necessary to prevent Musk from "prioritizing other ventures" . They need to incentivize him to focus on Tesla because, frankly, his other companies are more exciting to him right now. The goals are crazy ambitious. They include growing Tesla's market cap from about $1 trillion today to $8.5 trillion and boosting annual profits to $400 billion . It's a huge gamble.
But there's a catch. This isn't the first time Musk has been through this. A Delaware judge voided his previous $55 billion pay package from 2018, calling it "an unfathomable sum" that was unfair to shareholders . A re-ratification vote passed in mid-2024, but there's still expected to be follow-up litigation . So even if shareholders approve this new package, it's likely to end up in court too. It's a messy situation that adds another layer of uncertainty to Tesla's future and Musk's wealth.
8. The Future of Musk's Wealth
So where does all this leave us? Elon Musk's fortune is now a story about his private companies. SpaceX and xAI are the powerhouses driving his wealth to new heights, while Tesla, though still enormous, is becoming a smaller piece of the pie. This shift reflects where Musk's passions currently lie—in space exploration and artificial intelligence. These are the fields he seems to believe hold the key to the future.
His wealth is incredibly volatile, subject to the whims of the stock market, his political affiliations, and legal battles over his compensation. He briefly lost the title of world's richest person to Oracle's Larry Ellison in September 2025 when Oracle's stock surged on AI news . It just shows how quickly things can change at the very top.
Looking ahead, the proposed Tesla pay package could potentially make Musk the world's first trillionaire if all its ambitious goals are met . But that's a big if. It depends on Tesla achieving a market valuation of $8.5 trillion, which is more than double the size of Nvidia, currently the world's most valuable company . Whether that happens or not, one thing is clear: Elon Musk's financial empire has been fundamentally reshaped, and its future growth will be powered by the stars and artificial intelligence.
Frequently Asked Questions
What are Elon Musk's main sources of wealth today?
Most of his wealth now comes from his private companies, SpaceX and xAI. His stake in Tesla is still valuable but now represents less than half of his total fortune .
How much is SpaceX worth?
SpaceX is planning an insider share sale that would value the company at $400 billion, nearly double its valuation from last year .
What is xAI and how much is it worth?
xAI is Musk's artificial intelligence company. It was merged with X (formerly Twitter). Its valuation has grown from $80 billion at the start of 2025 to a potential $200 billion in a new fundraising round .
Why is Tesla proposing a new $1 trillion pay package for Musk?
Tesla's board says the package is necessary to incentivize Musk and prevent him from "prioritizing other ventures" since most of his wealth now comes from outside Tesla .
Has Musk's net worth been affected by his political activities?
Yes. His association with the Trump administration and his political donations have correlated with volatility in his net worth. Tesla also faced boycotts and vandalism allegedly related to his political stances .
How does Musk's wealth volatility compare to other billionaires?
In 2025, Musk's net worth dropped by $75 billion. The only other billionaire to see a similarly significant reduction was Bill Gates, whose wealth dropped due to philanthropy .
What is the status of Musk's previous $55 billion pay package from Tesla? A Delaware judge voided the package in January 2024. Shareholders voted to re-ratify it in mid-2024, but follow-up litigation is ongoing .
How much control does Musk have over his private companies? He has significant control: a 42% stake in SpaceX and a majority stake in xAI. This gives him more voting power than he has at Tesla, where he seeks 25% control .