Elon Musk, the celebrity CEO of Tesla, may soon become the first person with a net worth of $300 billion. The world’s richest man just added $36 billion to his fortune earlier on October 25, following an announcement that Hertz Global Holdings Inc is ordering 100,000 electric vehicles from Tesla. This was the largest single-day gain in the history of the Bloomberg Billionaires Index. With a whopping $289 billion, Elon Musk is now nearly $100 billion richer than Jeff Bezos, the former No. 1 in the Bloomberg Billionaires Index.
Just to give you an idea, Elon Musk’s net worth has surpassed the market capitalisation of the world’s second-largest automaker Toyota. The famous carmaker is now valued at around $283 billion.
The share of Tesla Inc surged 13 per cent on news of the Hertz order to cross the market capitalisation of $1 trillion. To cherish this moment, Musk wrote on Twitter, “Wild $T1mes!” Tesla was the first automaker to join the elite club of trillion-dollar companies that includes Apple Inc, Amazon.com Inc, Microsoft Corp and Alphabet Inc. Elon Musk derives two-thirds of net worth from electric-car company which he co-founded in 2003, according to Bloomberg.
Tesla CEO had added a whopping $119 billion to his fortune this year, thanks to the recent surge in the Tesla stocks. Tesla stocks have been performing well in the last few weeks. The auto maker’s stock price climbed 45 per cent this year as investors continue to take interest in electric cars.
Musk has also recently added $10.6 billion from SpaceX, the rocket company that he founded in 2002. SpaceX had an agreement with new and existing investors to sell up to $755 million in stock from insiders at $560 a share — increasing the company’s valuation to $100.3 billion. The valuation of SpaceX crossed $100 billion following this share sale.
Musk’s surging personal fortune puts him in an orbit of his own, even among the ultra-billionaires. Musk is now $184 billion ahead of Warren Buffett, who is currently the 10th richest person in the world. He has a more than $150 billion lead on No. 4 Bill Gates.
It must be noted that the celebrity CEO does not withdraw in any salary from Tesla. A part of his stake is pledged as collateral for personal loans, according to company filings. He has very few liquid assets. Last year, Elon Musk announced to sell his homes and all his physical possessions.
The world’s billionaires have been rapidly accumulating wealth during the pandemic year as central banks pump liquidity into the global economy. The 500 richest people have added $742 billion so far this year, according to the Bloomberg index.
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