Elon Musk surpasses Bill Gates in global rich list

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Words: Matthew Hansen
25 Nov 2020

Soaring stock prices have seen Tesla’s eccentric CEO, Elon Musk, overtake billionaire tech magnate Bill Gates to become the second richest person on the planet.

According to a report by Bloomberg, the South African entrepreneur now has a net worth of US$127.9billion following a flurry of activity around Tesla stocks, triggered by their addition to the S&P 500 Index.

The news completes a whirlwind 12 months for Musk which has seen his net worth rise by over US$100billion. The only person on the planet with a higher recorded net worth right now is Amazon’s Jeff Bezos. Bloomberg also adds that Gates would still be ahead of Musk had it not been for a recent US$27billion donation to charity.

The report says that around three quarters of Musk’s value stems from his stake in Tesla, with the likes of his stake in SpaceX and the Boring Company also contributing to the grand total.

It had been thought that Musk would simply become the third richest person on the planet following the S&P 500 Index listing (taking the spot off Facebook’s Mark Zuckerberg). But ongoing increases in share price further vaulted Musk’s position.

Tesla stocks have grown by over 500 per cent this year alone, with increases of 6.6 per cent and 5.1 per cent recorded on Monday and Tuesday this week, respectively. At the end of play on Tuesday, stock prices settled at a bonkers US$548.53 per share.

While Tesla’s share prices place it well ahead of the likes of Ford and General Motors, it’s worth noting that the firm does not produce as many vehicles or register as consistent a profit as most of its peers.

For example, the EV firm sold 139,300 vehicles in the third quarter of 2020. By contrast, GM sold 1,793,311 in the same period.

 

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