Elon Musk could be on track to reclaim trillionaire status as SpaceX (NASDAQ:SPCX) rebounds after the post-IPO plunge.
Musk, the richest person in the world, has added over $150 billion in wealth in the past two weeks. While his net worth dropped by $5.65 billion on Friday, he ended the week with over $858 billion in wealth. This figure makes him richer than Google’s Larry Page and Sergey Brin, and Amazon’s Jeff Bezos, combined.
Elon Musk’s Wealth Has Been Boosted by SpaceX Stock
SpaceX, the biggest part of Elon Musk’s wealth, has staged a cautious 32% recovery after releasing its mixed earnings report and after the employees’ lockup expiration. Its results showed that its three key businesses are seeing strong growth. The space business had revenues of $962 million, while connectivity and AI made $4.2 billion and $2.5 billion, respectively.
The main challenge, however, is that its capital expenditure is growing substantially. Its Capex soared to $18 billion in the second quarter, up by $8 billion in the same period last year. It spent $28 billion in the first six months of the year, and this growth will likely continue growing as it continues spending.
Analysts are optimistic that SpaceX stock has more upside to go as the spending will be beneficial in the long term. Indeed, its AI spending is already bearing fruit as it has inked some major deals with companies like Alphabet, Reflection AI, and Anthropic.
These deals will help its revenue growth accelerate. Expectations are that its annual revenue will jump to $44.5 billion this year, followed by $95 billion next year. As a result, Benzinga data shows that the consensus SPCX stock target is $230, up by 65% from the current level. Such a move would bring its market cap to $3 trillion and Musk’s stake at $3.03 trillion and Musk’s stake at over $1 trillion since he owns 4.7 billion shares.
Tesla Stock Has Also Jumped
Elon Musk’s wealth has also risen because of the ongoing Tesla (NASDAQ:TSLA) stock rebound. After bottoming at $297 in August, it has rebounded to $342 and is attempting to fill the fair value gap formed after its earnings release. Tesla has risen after recent reports showed that its China and European sales were rising.
A recent report showed that Tesla Model Y sold 180,000 vehicles in the first six months of the year, becoming the second-best-selling vehicle in the category after Geely’s Xingyuan. Tesla is also boosting its production in Europe. Musk owns between 11% and 12% of Tesla.
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