Elon Musk, the richest man in the world and celebrity CEO of Tesla, now has more money than the entire Gross Domestic Product or GDP of Pakistan. According to reports, the entrepreneur is close to touching $300 billion net worth very soon, making him the first person to do so. Currently, his net worth is $292 billion. In drastic comparison, the GDP of Pakistan, which houses around 220 million people, is around $280 billion (at current market prices) in 2020-21, as per reports. The celebrity CEO, Musk, added $36 billion to his fortune earlier on October 25. This came after an announcement that Hertz Global Holdings Inc is ordering 100,000 electric vehicles from Tesla.
The announcement accounted for the highest amount of earnings in a single day in the history of the Bloomberg Billionaires Index. On Monday, Tesla’s share surged by as much as 13 per cent. Elon Musk is now nearly $100 billion richer than Amazon CEO Jeff Bezos, who earlier occupied the No. 1 position, in the Bloomberg Billionaires Index.
The comparison between Elon Musk’s current net worth and the GDP of Pakistan was brought into the limelight by US-based journalist Edward Luce on Wednesday. “US-based journalist Edward Luce,” he wrote in a tweet.
For another reference, Musk’s net worth is now higher than the market capitalisation of the world’s second-largest automaker Toyota, which is valued at around $283 billion at present.
As Tesla Inc’s shares jumped following the announcement, the electronic vehicle’s market capitalisation crossed $1 trillion. Following this, Musk wrote on Twitter, “Wild $T1mes!”
Tesla has now become the first automaker to join the elite club of trillion-dollar companies. This club includes Apple Inc, Amazon.com Inc, Microsoft Corp and Alphabet Inc, which owns Google. Elon Musk garners as much as two-thirds of net worth from the electric car company that he co-founded in 2003, according to a Bloomberg report.
However, the majority of Elon Musk’s net worth is connected to shares and options of Tesla. For this, some analysts believe that the automaker’s stocks are overvalued, as per reports.
Despite all this, the Tesla CEO had this year added a whopping $119 billion to his fortune. This came after a recent surge in Tesla stocks, which have been performing well over the past few weeks. At a time when investors continue to be interested in buying electric vehicles, Tesla’s stock price climbed 45 per cent this year.
However, in an article published in New York Times on Wednesday, Tesla was labelled as ‘very different’ from other car companies. The report noted that the auto maker junk bond rating, meaning that it has a high yield but high risk. “Tesla’s nearly $10 billion in long-term debt was recently raised to BB+, one level below investment grade,” the article said. It also noted that Tesla’s earnings were “far lower than others”. The sales forecast for Tesla amounts to around $6 billion, which is about one fifth of that of Amazon’s earnings according to the New York Times report.
As far as Elon Musk is concerned, he has recently also added $10.6 billion from SpaceX, the rocket company that he founded in 2002. SpaceX’s valuation has recently risen to $100 billion, making it the second-most valuable private company in the world, as per reports. This huge valuation is a result of its recent agreement with new and existing investors to sell up to $755 million in stock from insiders at $560 a share.