How Elon Musk Became the Richest Man in the World
In a world reeling from the effects of the 2020 pandemic, while most economies suffered, one man’s wealth surged by an astonishing $150 billion in a single year. That man was Elon Musk, who officially became the world’s richest person on January 7, 2021, surpassing tech giants like Jeff Bezos and Bill Gates.
At the start of 2020, Elon Musk had a net worth of around $27 billion, placing him 35th among the world’s richest individuals. But by early 2021, his net worth had exploded to over $190 billion. Interestingly, it wasn’t due to any radically new project or major innovation in that year—Musk had simply continued doing what he had been doing for years.
So, what exactly caused this exponential rise?
The answer lies in Tesla’s stock price. In 2020 alone, Tesla shares surged by 720%. Since Musk owns around 20% of Tesla, his personal fortune skyrocketed with it. By January 2021, one share of Tesla had climbed from $17 (IPO in 2010) to $854. This massive increase in valuation pushed Tesla into the league of global tech giants, making it the fifth most valuable company in the world, behind only Apple, Microsoft, Amazon, and Alphabet (Google).
As of mid-2025, Elon Musk’s net worth hovers around $240–260 billion, depending on Tesla’s share fluctuations and the private valuation of SpaceX, another of his ambitious ventures.
Elon Musk’s Early Life: A Self-Taught Genius
Born in 1971 in Pretoria, South Africa, Elon Musk showed early signs of brilliance. At just 10, he got his first computer and taught himself how to program. By 12, he had created and sold a video game called “Blastar” for $500—his first business deal.
He moved to Canada in 1989 and later studied at the University of Pennsylvania in the U.S. Fascinated by the Internet, space exploration, and renewable energy, Musk would go on to make each of these areas his life’s mission.
His entrepreneurial journey started with Zip2, a city guide software company sold for nearly $300 million. This was followed by X.com, an online payment company that eventually became PayPal, which eBay acquired for $1.5 billion in 2002. These early exits made him a multimillionaire—but he was just getting started.
The Rise of Elon Musk: Tesla and SpaceX Dominate the Future
After PayPal, Musk invested over $100 million to launch SpaceX in 2002 with the audacious goal of colonizing Mars. Then came his involvement in Tesla, an electric car startup originally founded by Martin Eberhard and Marc Tarpenning in 2003. Musk joined in 2004 with a $30 million investment and became CEO in 2008.
Today, Tesla is not just an EV company—it’s a tech and energy company, building cutting-edge battery systems, solar panels, and autonomous driving software. In 2024, Tesla revealed its first affordable mass-market EV, the Model 2, and announced plans to enter India, Southeast Asia, and South America in a big way.
Meanwhile, SpaceX is closer than ever to realizing its Mars mission. In 2023, it launched its first fully reusable Starship prototype, and by 2025, it plans its first manned lunar flyby with Japanese billionaire Yusaku Maezawa and a team of artists and scientists.
Why Elon Musk Calls Himself ‘Cash Poor’ Despite Billions
Here’s the twist: Elon Musk might be the richest man alive, but he doesn’t live like it. He once said, “I’m cash-poor.” Over 99% of his wealth is tied up in the shares of Tesla and SpaceX. He doesn’t take a salary from Tesla, and he’s sold most of his personal real estate.
Selling a significant portion of his shares would signal a lack of confidence in his own companies and could cause a market crash. That’s why most of his money is technically unusable, despite what the net worth charts say.
The Real Elon Musk: Visionary or Volatile?
Musk has often said, “You don’t need a college degree to be smart,” emphasizing talent and skill over formal credentials. This philosophy is reflected in Tesla’s hiring practices and Musk’s tweets, where he’s made clear that passion and ability matter more than diplomas.
He isn’t interested in yachts or mansions. Instead, he’s focused on making humanity a multi-planetary species and solving Earth’s biggest problems—like climate change and sustainable energy.
His tweet after becoming the richest man?
“Strange… well, back to work.”
That pretty much sums up the man.
What’s Next for Elon Musk in 2025 and Beyond?
Looking forward, Elon Musk is preparing for the next big leap:
- Tesla is working on an AI-driven autonomous taxi fleet, with initial launches planned for late 2025.
- SpaceX is moving ahead with its Starlink satellite network, which now serves over 70 countries, providing internet access to rural and underserved areas.
- Neuralink, Musk’s brain-computer interface company, is in advanced clinical trials.
- xAI, his AI venture launched in 2023, continues to develop safe and explainable artificial intelligence systems.
With all these ventures and growing influence in tech, space, energy, and AI, it’s no wonder some believe that Elon Musk could become the world’s first trillionaire within the next decade—if not sooner.
Conclusion: What Elon Musk Teaches Us About Wealth and Purpose
More than just numbers, the story of Elon Musk is about using wealth as a tool—not for luxury, but for impact. Whether it’s sending rockets into space, creating eco-friendly cars, or building brain chips, Musk sees money not as an end but a means to change the world.
Love him or hate him, Elon Musk is shaping the future—and he’s doing it on his own terms.
