Musk Inches Toward $1 Trillion Net Worth on Rockets, Not Cars

$845 billion. That's what one person is worth today – a number that would have sounded like science fiction just a decade ago. Elon Musk has become the first human to crack the $800 billion barrier, but here's the twist: his journey to potentially becoming the world's first trillionaire won't be powered by the electric vehicles that made him famous.

It'll be rockets and AI that get him there.

The Great Wealth Migration

This week's bombshell merger between SpaceX and xAI valued the combined entity at $1.25 trillion. With Musk owning an estimated 43% of this merged powerhouse, his stake alone is worth over $530 billion – nearly two-thirds of his total wealth. Meanwhile, his Tesla holdings represent just 11-15% of outstanding shares, and the stock is down 9% this year.

Tesla itself acknowledged this shift in a recent proxy filing, noting that "a majority of Mr. Musk's wealth is now derived from other business ventures." It's a remarkable admission from the company that once defined Musk's empire.

The numbers tell the story of a strategic pivot. At SpaceX, Musk owns 42% and controls 80% of voting rights. At Tesla, despite his outsized influence, his ownership stake is relatively modest. When SpaceX goes public in 2026 as planned, Tesla will become an even smaller slice of his liquid wealth pie.

The Trillion-Dollar Math

For Musk to become the world's first trillionaire, assuming Tesla's stock stays flat, SpaceX would need to reach a valuation of roughly $1.6 trillion. Is that realistic?

Consider this: SpaceX has already secured over $20 billion in federal contracts, with more lucrative deals in the pipeline. Musk frames the xAI acquisition as the next step toward "orbital data centers" – essentially running AI computations in space. It's ambitious, even by his standards.

But investors might struggle with the complexity. Greg Martin from Rainmaker Securities puts it bluntly: "You've muddied up your story a little bit as a pure-play SpaceX shareholder, but the opportunity has gotten a lot bigger." The company now combines defense contracting and satellite operations with a cash-burning AI venture trying to compete with Google, OpenAI, and Anthropic.

Tesla's Trillion-Dollar Counteroffer

Tesla isn't giving up without a fight. Late last year, shareholders approved a compensation package for Musk potentially worth $1 trillion, paid out in 12 tranches if the company hits specific milestones. The first payout triggers when Tesla reaches a $2 trillion market cap – about $460 billion more than its current valuation.

The package aims to "prevent him from prioritizing those other ventures," according to Tesla's proxy filing. But Columbia Law professor Dorothy Lund isn't convinced the strategy will work. "If SpaceX/xAI gives him more money and a bigger share, that Tesla package may look less appealing," she told CNBC.

With Tesla's brand value declining and its long-promised robotaxis and humanoid robots still in development, the company faces an uphill battle to reclaim Musk's attention.

The 'X' Empire Vision

Some analysts predict Musk will eventually merge all his companies under one roof. Ross Gerber, CEO of investment firm Gerber Kawasaki, speculates about a SpaceX-Tesla merger listing on the NYSE under ticker symbol "X" – formerly used by U.S. Steel.

It would complete Musk's vision of running one massive company under the X brand, following his rebranding of Twitter and its merger with xAI last year. "This huge entity would make it easier for them to raise money and borrow," Gerber argues. "How else is Musk supposed to compete and become a major AI player?"

The timing makes sense. With Alphabet announcing up to $185 billion in capital expenditure this year, the AI race requires unprecedented financial resources.