Tesla stock hits $1.5 trillion valuation as Elon Musk becomes world’s richest person

Driven by a surge in its share price, Tesla’s ( TSLA , Financials ) market cap topped $1.5 trillion, an all-time high. This milestone has propelled CEO Elon Musk’s net worth to $486 billion, confirming his position as the richest person on Earth.

Citing Tesla’s developments in artificial intelligence and autonomous driving, Wedbush analyst Dan Ives set his price target for the company at $515. He described a $650 “bull case” scenario that could push Tesla’s value to $2.1 trillion. However, some experts advised caution, advising investors to consider buying Tesla stock during pullbacks due to concerns about its current value.

SpaceX, another company led by Musk, reaches a value of $350 billion, now the most valuable startup in the world. Following heightened investor interest following the US presidential election, a phenomenon known as the “Trump Success” helped TSLA stock gain over 77% in value

Apart from Tesla and SpaceX, Musk’s other endeavors, including his artificial intelligence startup xAI, have witnessed expansion. According to Reuters, Musk’s business portfolio was further diversified when the Oman Investment Authority just bought a stake in xAI.

Legal and regulatory difficulties remain. A Delaware court recently ruled that Musk’s $101 billion pay deal was unfair to shareholders. Tesla intends to appeal the decision. According to The New York Post, the SEC also filed a settlement demand regarding Musk’s purchase of Twitter, now X, raising questions about his compliance with regulatory standards.

Despite these obstacles, Tesla’s singular success highlights its leadership in electric vehicles and artificial intelligence; depending on government changes, future expansion has great potential.

This article first appeared on GuruFocus.