TESLA shares make Elon Musk richer by $36B
Tesla’s share price rallied today making Elon Musk richer by 36.2 billion dollars. The 12.66% increase in the share price also helped Tesla touch the milestone and breach the 1 trillion-dollar mark in market capitalization.
The share price of Tesla soared on account of receiving a massive order from car-rental behemoth “Hertz”. The order is its biggest ever order of 1 lakh electric cars to be delivered to Hertz. According to sources, the order would primarily be of Tesla’s Model 3. The Model 3 is the top selling vehicle in Europe.
The deal comes a year after the behemoth Hertz had filed for bankruptcy protection at the height of the COVID pandemic, as demand for travel and rental cars dropped significantly.
With increase in Tesla’s share price, it also became more valuable than top 5 BSE companies combined. While Tesla’s shares closed at an all-time high of 1.02 trillion dollars, the total market capitalization of BSE’s top 5 shares stands at 688 billion dollars.
This also puts Tesla in the elite club of trillion-dollar companies like Facebook, Amazon and Parent company of GOOGLE-Alphabet. Though, it is still far from being the most valued company in the world. The most valued company in the world is a battle between Microsoft and Apple, both of which are worth over 2 trillion dollars in market capitalisation.
Elon Musk’s Net worth
Elon Musk strengthens his position as the richest person in the world as he adds 36 billion dollars to his net worth. His total net worth now stands at 289 billion dollars while the second richest person Jeff Bezos’ stands at 193 billion dollars after losing 751 million dollars on Monday.
So far this year, Elon Musk has been able to add 119 billion to his net worth.
With the addition of 36 billion dollars to his net worth, Elon Musk is now worth more than the Oil Giant Exxon Mobil.
Elon Musk is the owner and founder of many “out of the world” companies like SpaceX, The Boring company, Neuralink, OpenAI and an early-stage investor, CEO and Chief Engineer at Tesla. While born and brought up in South Africa, Musk resides in USA currently with citizenships of USA, Canada and South Africa.
Elon Musk is known for his tweets, Cryptocurrency enthusiasm and his dream of colonizing Mars for human residence. While such a dream would have been considered ludicrous a few years ago, Elon has been able to start a race to Mars in the private “space-travel” industry.
He made his initial fortune by co-founding a web software company Zip2 with his brother. The company was later sold to Compaq for 307 million dollars. While most would have decided to settle, this was just the beginning of the story for Elon who went on to be the founder or investor of many start-ups and companies including PayPal.
Tesla inc. was founded in 2003 by Martin Eberhard and Marc Tarpenning. The company was named as a tribute to inventor and electrical engineer from the late 19th and early 20th century Nikola Tesla.
The company was later taken over by Elon Musk by becoming the majority shareholder and its chairman. He has served as the CEO since 2008.
According to Musk, the purpose of Tesla is to help expedite the move to sustainable transport and energy, obtained through electric vehicle and solar power.
Tesla has had its fair share of controversies ranging from creative accounting, whistleblower retaliation, worker rights violation, unresolved technical problems with their products. The company has also received flak due to statements by its CEO Elon Musk.
Tesla also acquired a company named Solar City in 2016 at a cost of 2.6 billion dollars. Tesla later reorganized its solar business under Tesla Energy.