Elon Musk has achieved a historic wealth milestone after SpaceX acquired his artificial intelligence and social media venture, xAI, propelling his net worth beyond the $800 billion mark and placing him far ahead of any individual in modern history. According to reports from Forbes, the transaction values the combined SpaceX-xAI entity at $1.25 trillion, adding roughly $84 billion to Musk's personal fortune. His net worth is now estimated at about $852 billion, making him the richest person ever by a wide margin. As reported by multiple sources, Musk's net worth reached $852 billion, almost $578 billion higher than the world's second-wealthiest person, Google co-founder Larry Page, whose net worth is estimated at $281 billion. This represents the fourth major wealth record Musk has achieved since October, following his milestones of becoming the first person worth $500 billion, $600 billion, and $700 billion in just four months.
Before the merger, Musk owned around 42% of SpaceX, which was valued at $800 billion following a tender offer in December. That stake alone was worth about $336 billion. Separately, he held close to 49% of xAI, which was valued at $250 billion after a private fundraising round earlier this month, putting his holding at roughly $122 billion. As reported by Forbes, these separate holdings provided the foundation for the massive wealth creation through the merger. The new SpaceX valuation has helped close the gap with Tesla's public market capitalization, which stands at roughly $1.58 trillion, making SpaceX currently only about 26% of Tesla's value.
Post-merger, SpaceX has been valued at $1 trillion, while xAI retains its $250 billion valuation. According to Forbes estimates, Musk now owns about 43% of the combined entity, translating into a stake worth approximately $542 billion - by far the largest single contributor to his net worth. This represents a significant increase from his pre-merger SpaceX stake alone, with SpaceX becoming Musk's biggest asset by a wide margin. Beyond the merged entity, Musk remains significantly exposed to Tesla, owning roughly 12% of the electric vehicle maker, valued at $178 billion, and Tesla stock options, valued at an estimated $124 billion. The merger marks the second time in under a year that Musk has merged two of his controlled companies, following xAI's acquisition of social media platform X in March, which valued xAI at $80 billion and X at $33 billion.
SpaceX has demonstrated strong financial performance with revenue of about $15 billion last year and a profit of about $8 billion in 2019, according to Reuters. The company's business includes orbital launch services for government clients, including NASA and the U.S. Department of Defense, and the growing Starlink satellite internet network. Starlink now has over 9,000 satellites in orbit and has an estimated 9 million global customers. The company is rumored to be gearing up for an initial public offering, which would expose its valuation to open-market pricing and heightened scrutiny, potentially providing better validation of current figures. As reported by Forbes, SpaceX's $1.25 trillion valuation is only 26% below Tesla's market capitalization of about $1.58 trillion, marking a significant shift in Musk's portfolio composition.
Musk stated his vision for the merger in a blog post on SpaceX's website, describing it as forming 'the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world's foremost real-time information and free speech platform.' However, the merger brings new regulatory challenges, with authorities in Europe, India, Malaysia, and California investigating xAI after its Grok image generator allowed users to create explicit deepfake images. On Tuesday, French investigators raided X's offices and prosecutors ordered Musk to answer questions about suspected algorithm abuse. As noted by Columbia University law professor Eric Talley, 'Different regulatory entities may say you have to be in good standing overall as an organization.' The merger has also raised questions about Musk's role as both buyer and seller in these transactions, with investors expressing curiosity about the multimerger combination, though they mostly trust Musk's strategic vision.
Tesla's stock has dropped 6% so far in Musk's 2026 cycle, reflecting growing concerns about the electric vehicle maker's performance. The company reported a 16% year-over-year decline in vehicle deliveries in early January, and announced that total revenue fell 3% in 2025 - the first annual decline on record. Last week, Musk told analysts that Tesla is ending production of its Model S and X vehicles, which made up less than 3% of annual deliveries in 2025. Moffett Nathanson analysts expressed skepticism about Musk's ambitious space data center plans, noting that 'a full-fledged build is not happening anytime soon, given the requisite operational maturity, supply chain development, and financial requirements.' Despite these challenges, Tesla remains a significant component of Musk's wealth, valued at $178 billion plus stock options worth $124 billion.