Confirmed: Elon Musk now the richest human alive

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Words: Matthew Hansen
11 Jan 2021

After a meteoric rise in the wealth charts in 2020, Tesla CEO Elon Musk has managed to overtake Amazon CEO Jeff Bezos.

The news comes after Musk’s rapid leap up the charts after his electric car company was added to the S&P 500 Index in late 2020. That move propelled him into the top five, which became the top two in late November.

Late last week, Tesla overtook Facebook — an eight per cent share price gain enough to push it past the social media giant, which in turn was enough to stimulate investors further. The result; Musk’s net worth now sits at US$195billion, or approximately $270billion. Bezos by comparison is rated some US$10billion south of Musk’s figure.

It unsurprisingly marks a new record in share prices for the brand — the second record milestone it’s hit in a short time, having narrowly squeaked in over 500,000 car sales in 2020.

Tesla is now positioned in fifth on the S&P 500 Index, while also sitting atop the index’s ‘top performing’ company tab for quite some time. Musk’s response to the news has been brief; the CEO saying “how strange” on Twitter, adding “well, back to work”.

Those who have followed Tesla’s rising stock prices will know that there’s a lot of conjecture around whether the dollar figures attached are a fair assessment of the company’s actual worth. The tech firm still holds a fairly abysmal 1560.31 price-to-earnings ratio — signaling that its profits aren’t actually that noteworthy. Facebook’s ratio sits at 30.62, for reference.

Indeed, most who are putting money on Tesla and Musk are doing so as a nod to the company’s future potential as electric cars become more prolific and governments aim to mandate bans on the sale of internal combustion engine cars.

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