Tesla, the electric car maker, shares increased by 2.8 percent bringing the value to a high of $1,887.09. The increase puts Mr Musk within $15billion of Facebook founder Mark Zuckerberg.
The rise in Tesla share prices also places Mr Musk ahead of the billionaire Bernard Arnault, the chief executive of the French luxury goods group LVMH, according to the Bloomberg Billionaires Index.
Mr Musk’s worth has grown by $57billion this year.
It is the second biggest increase after the Amazon founder, Jeff Bezos.
Mr Bezos is the world’s richest person with a worth of $188billion.
He comes before Bill Gates who ranks as the second richest person in the world with $114billion.
Mr Musk who owns 21 percent of Tesla said that more than half of his stake is collateral for loans.
He has moved the company to become bigger than the big three American carmakers Ford, Fiat Chrysler and General Motors and Japan’s Toyota.
Tesla’s stock market value on Tuesday night was $352billion contrasting with its $185billion in mid-June.
READ MORE: Elon Musk’s Tesla makes major slash to share prices
It was the second continuous quarter of improved numbers for the car manufacturer.
In the first three months of this year, Tesla delivered 88,400 vehicles.
This was down from the fourth quarter of last year which saw 112,000 vehicles being shipped.
On Tuesday, SpaceX founded by Mr Musk, announced that it had raised $1.9billion in fresh funding.
The additional funding has increased its equity valuation of $46billion.
SpaceX was founded by Mr Musk in 2002 and is based in Hawthorne, California.
It is an American aerospace manufacturer and space transportation services company.
Mr Musk created the company with the aim of reducing space transportation costs to enable the colonisation of Mars.
This month saw two American astronauts return from their two-month mission in Crew Dragon from the International Space Station.
Operated and built by SpaceX under contract to Nasa, it was the first commercial spaceship to take astronauts into orbit.