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| Elon Musk. Source: Startup.com (Creative Commons License). |
Elon Musk and his business rival, Jeff Bezos, took turns being the richest man alive for a while. However, the debate has been settled for now, and Musk has emerged as the wealthiest person on earth.
Musk is no stranger to being wealthy. However, his personal net worth has experienced a massive jump; from $24 billion last year April, Musk is now over the $300 billion mark, according to the Forbes real-time billionaire list and is estimated to be around $335 billion according to some sources. In contrast, Bezos sits in second place with almost $193 billion.
The bulk of Musk’s fortune comes from two of his companies, Tesla and SpaceX. While the former has been pegged to boost his fortune more in the future, the former is responsible for his recent meteoric rise in net worth.
Musk is now over the $300 billion mark, according to the Forbes real-time billionaire list and is estimated to be around 335 billion according to some sources.
Tesla is the premier manufacturer of electric cars. It leads the sales chart and makes the best selling EV ever, the Model 3. Tesla’s stock has been rallying since it delivered almost half a million electric EVs. The company set a goal of a 50 percent increase in sales for 2022 and is on track to beat the target.
With production capacity now above one million units per year for the first time, and two new factories nearing completion, its goal for another 50 percent increase for 2022 seems likely.
Although Tesla has been enjoying a steady increase in its stock price, despite analysts predicting a reversal and some stockholders shorting, a single new item was what Musk needed to clear the $300 billion mark.
When Hertz announced it had placed an order for 100,000 units of Model 3 for its car rental business, the market reacted by rushing Tesla stocks, sending the share price above $1,000 for the first time to close at almost $1,190. It took Tesla into the exclusive club of trillion-dollar companies, which tech companies dominate.
However, Musk later clarified that there had not been an actual contract between Tesla and Hertz for 100,000 electric vehicles. He also explained that such a large order does not have any effect on the finances of Tesla since it can’t meet existing demand. As proof, Tesla would only sell the cars to Hertz at full price, unlike other car rental companies that get a discount on large orders.
Tesla’s stock price lost some percentage points, but it has not been enough to threaten Musk’s position as the richest man alive.
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Elon Musk