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Home Personal Finance elon musk reaches $850b; spaceX-xAI merger fuels wealth surge

elon musk reaches $850b; spaceX-xAI merger fuels wealth surge

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Elon Musk’s net worth reached a record $850 billion Tuesday. The surge follows the recent merger of his aerospace firm SpaceX and artificial intelligence startup xAI.

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The combined entity is now valued at approximately $1.25 trillion, according to recent private funding rounds. Musk holds a 43% stake in the new conglomerate, Bloomberg data showed. Still, the billionaire faces mounting legal pressure as regulators investigate his AI tools across four continents.

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The $1.25 Trillion Merger

SpaceX acquired xAI last week to integrate satellite internet with generative AI. Therefore, Musk’s aerospace business now accounts for nearly two-thirds of his total wealth. The move aims to power space-based data centers using the Starlink network.

Meanwhile, Tesla remains a secondary but significant pillar of his fortune. Musk currently holds a 12% stake in the electric vehicle manufacturer. This holding is valued at $178 billion, while separate stock options add another $124 billion. In fact, his total net worth now exceeds the combined wealth of Larry Page and Mark Zuckerberg.

Trillionaire Projections for 2026

The prediction market platform Kalshi reported a 75% probability of Musk becoming a trillionaire this year. Markets shifted Tuesday as traders bet on a potential SpaceX IPO. Such a public offering could push Musk’s personal net worth to $1.5 trillion.

Next, internal data shows that 91% of traders believe he will reach this milestone before 2029. Historically, his wealth grew from $500 billion to $800 billion in just five months. This rapid pace stems from the restoration of his record-breaking $878 billion Tesla pay package last November.

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Global Scrutiny Over Grok AI

The xAI division faces active investigations in Europe, Asia, Australia, and California. Regulators launched these probes after the Grok AI tool generated explicit deepfake images. These non-consensual images often depicted women and children, officials reported Tuesday.

“Anyone using Grok for illegal content will face consequences,” Musk wrote on X recently. Yet French prosecutors raided X’s Paris headquarters earlier this month. They are investigating alleged complicity in spreading sexually explicit material. Still, investors contributed an extra $20 billion to xAI in January despite the legal backlash.

Reality Check

Musk often describes himself as “cash poor” despite his massive headlines. In fact, less than 0.1% of his $850 billion net worth exists as liquid cash. Therefore, his status as a potential trillionaire depends entirely on paper valuations. Still, he frequently borrows against his shares to fund new acquisitions. Thus, a sudden market correction in Tesla stock could trigger forced liquidations.

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The Loopholes

The Tesla pay package includes performance milestones that appear nearly impossible to reach. For example, Tesla’s market value must hit $8.5 trillion for Musk to receive the full $1 trillion award. Still, shareholders approved the plan with 75% support last year. Therefore, he can receive stock tranches even if the highest targets remain unmet. In fact, many of these “Mars shot” goals remain a decade away.

What This Means for You

Retail investors must watch the upcoming SpaceX IPO filing carefully. First, check if the offering includes a secondary market for existing Starlink users. Then, monitor Tesla’s Q1 earnings to see if robotics margins offset declining vehicle sales. Finally, expect continued volatility in X as global privacy watchdogs finalize their Grok AI reports.

What’s Next

The French cybercrime unit will interview Musk in April regarding the Grok deepfake case. Then, SpaceX will likely announce its IPO timeline by mid-summer 2026. Finally, Tesla will begin pilot testing its steering-wheel-less Cybercab in several U.S. cities by June.

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