Following Tesla’s biggest day on the stock market since 2013, Elon Musk has gained $26 billion.
Elon Musk is $26 billion richer after Tesla’s best day on the stock market since 2013
Tesla CEO Elon Musk has extended his lead in wealth significantly, adding $26 billion in recent days to his net worth. The gain sends his total wealth more than $50 billion greater than that of Larry Ellison, the former member of the board of Tesla.
Musk currently owns nearly 13% of Tesla’s outstanding shares—a fact that makes up much of his fortune. He also owns a major stake in SpaceX, which has a current valuation of more than $200 billion on private markets. Musk owns X, formerly known as Twitter. He’s also invested in xAI, an AI start-up. It’s worth noting that Musk’s fortune may rise further in turn from a shareholder lawsuit seeking to strip him of a 2018 pay package now under judicial review.
Tesla, in its recent earnings report, posted an adjusted earnings per share of 72 cents, beating an average analyst estimate of 58 cents. The increase in profit was substantially helped by $739 million from revenue from environmental regulatory credits and $326 million from the company’s full self-driving system. During the call, Musk was heavy into the future with Tesla’s autonomous vehicles, including plans for a ride-hailing capability that could be available as soon as next year to the general public in Texas and California. But it has never remotely met any of its self-imposed deadlines for product releases. So far, Tesla has failed to develop and sell cars capable of driving on roads without a human driver behind the wheel.
Musk’s public political activism—never mind his endorsement and expenditures for Trump—mostly raises an alarm about how his political work may have a bearing on Tesla eventually. An anonymous retail investor had some concerns to raise on an investor forum: how Tesla addresses the potential conflicts between Musk’s political engagement and the company’s primary goals. He also wanted to know if Tesla’s board takes any action to ensure Musk’s political actions do not harm the company’s mission, shareholder value, or brand reputation.
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