Elon musk has now become the world’s fourth richest person after Tesla gained $8 bn in one day as Tesla’s stock rose to 11% high.
Tesla holds a market-leading position in the electric car industry and is producing self-driving vehicles – and as the coronavirus pandemic has made people to think about the green environment, there are many politicians that are backing Tesla’s technology as the value of cleaner technology has now greater value than ever. After years of loses, Tesla has also observed fourth consecutive quarter of profit last month.
Elon musk’s Tesla shares rose 11% on Monday which has boost Musk’s net worth by $7.8 bn making him world’s fourth richest person.
According to a report,much of the 2020 share price rise has also been ascribed to a scramble by non-professional investors betting on the Tesla name. More than 450,000 small investors have bought Tesla shares through the commission-free Robinhood trading platform in the US. On one single day in July there were 50,000 new Tesla investors.
The investors’ interest was spiked due to the last week’s announcement of splitting the stock into five. This announcement should not effect the company’s valuation technically but despite all the price of each individual share has become more attainable for small investors.
If the company’s valuation continue to rise at such rapid pace then it will increase Elon musk’s fortune with $55bn bonus, which was agreed in 2018 and was payable on the achievement of a series of targets.
According to report, the most outlandish of those targets, at the time, appeared to be increasing the firm’s market capitalisation to $650bn – 12 times what both Tesla and General Motors were worth. Today, Tesla is worth more than eight times General Motors.
Elon Musk has always criticized lockdown policies during Covid-19 crisis. He has always been an outspoken entrepreneur. He has always been in controversies, most of which was usually fueled by Musk himself. He was also sued(unsuccessfully) for $190m in defamation damages after making disparaging tweets about a British caver who helped to rescue a football team which was caught in flooded cave in Thailand. In 2018, his tweet to take the firm private, which drove up the share price, made him fined with $20m by the Us Securities and Exchange Commission. But despite all the controversies his fortune has spiked.
He is also the boss of The SpaceX. He rose from the ninth place on 11 August to overtake Google co-founder Larry Page, investor Warren Buffett, former Microsoft CEO Steve Ballmer, business magnate Mukesh Ambani.
Elon Musk, The Silicon Valley inventor and entrepreneur is now worth more than $90bn. He has overhauled France’s richest person, the luxury goods tycoon Bernard Arnault, chairman of Louis Vuitton.
According to a report Musk’s fortune has grown by more than $57 billion this year, the second-biggest increase on the index after Amazon.com Inc. founder Jeff Bezos’s. The world’s richest man has accumulated $73 billion in 2020 and is now worth $188 billion.
There is still much to conquer for Elon as there are some entrepreneur who are still ahead of him, including Facebook’s co-founder, Mark Zuckerberg, and Microsoft’s founder, Bill Gates, and Amazon’s owner, Jeff Bezos, who is some distance ahead with an estimated net wealth of $195bn, according to the Bloomberg billionaires index.
Earlier this year, analysts from Morgan Stanley claimed that Tesla is extremely overvalued and that the share price will drop but despite all, Tesla’s price continued to climb to the point where it overtook Toyota as the world’s most valuable car company in July