Elon Musk’s net worth has risen to $127.9bn, according to the Bloomberg Billionaires Index. This means he has overtaken Bill Gates to become the world’s second-richest person. Jeff Bezos, the CEO of Amazon is the worlds richest person with a net worth of $186bn.
Eight out of the top ten richest men in the world are from the United States, and all have seen their net worth grow during the Covid-19 pandemic. Apart from Warren Buffet, who has a diversified portfolio, have the main industry defined as technology.
Elon Musk’s net worth
Elon Musk’s net worth has risen by $7.2bn to $127.9bn, primarily because of his shares in Tesla Motors.
This news comes following the surge in Tesla shares. They surged past a $500 billion market cap on Tuesday after trading opened and its stock price surpassed $527.48 per share.
Shares have risen almost 28 per cent since it was announced last week that Tesla will be added to Wall Street’s benchmark S&P 500 index from December.
While Tesla is leading the charge in the electrical vehicle market, other eco-friendly manufacturers have also been given a boost in recent weeks.
President-elect Joe Biden — a self-declared “car guy” — has said he will make the uptake of electric vehicles a key part of his climate strategy, has also boosted Wall Street shares and aims to give a much-needed impetus to the US economy.
Tesla is already the most valuable car firm in the world, despite producing a fraction of the vehicles of rivals such as Toyota, VW and General Motors.
On Tuesday, in a speech in Germany, Mr Elon Musk said it could “make sense” for Tesla to expand in Europe by entering the mass-market segment with a small car.
“In the US, the cars tend to be bigger for personal taste reasons,” he said. “In Europe, (they) tend to be smaller.”
And after years of losses, Tesla has seen five consecutive quarters of profit as sales of its cars perform well despite the pandemic.
The California-based firm will be the biggest new entrant on the S&P 500, with a market value of more than $500bn.
It means investment funds tracking the index will automatically hold its stock and benefit from gains in its share price – news that has excited investors.