The world’s richest man, Elon Musk recorded a $12 billion gain in net worth on Tuesday as Tesla’s shares continued to rise, following the electric vehicle maker’s report of delivery figures that exceeded market expectations.
Based on a stock market report, Tesla shares rose to just under $229 before midday contributing to the company’s nearly 25% rally since the stock price dropped below $183 on June 24.
He is currently worth $240.2 billion on the Forbes Billionaire Index at the time of publication.
Elon Musk holds around 12% stake in Tesla which increased to $160 billion from about $150 billion at Monday’s market close. The weeklong rally has added about $30 billion to his stake.
The electronic car company, Tesla delivered nearly 444,000 vehicles in the second quarter, a 14.8% increase over the previous quarter despite a 4.8% drop year-over-year.
This delivery number slightly surpassed analyst estimates of about 439,000 deliveries, according to FactSet.
The company’s ability to exceed expectations provided a significant boost to investor confidence, propelling the stock upward.
What to know
Tesla’s shares experienced significant volatility in the first half of 2024, plunging below $140 in April after peaking at over $250 at the start of the year.
The stock fell following Tesla’s report of a 48% decline in first-quarter profits and a 9% drop in revenue. The company has seen intermittent increases after announcing price cuts on some vehicles.
Additionally, the electric car company reported delivering 70,000 fewer vehicles than expected, marking the company’s first negative quarterly delivery growth in four years.
Several factors have affected Tesla’s vehicle deliveries this year, including supply chain issues and an arson attack at the company’s Berlin factory.
These challenges have compounded the difficulties in maintaining production levels and meeting delivery targets.
Despite these hurdles, Tesla’s recent performance indicates a potential turnaround as the company adapts to and overcomes these obstacles.
The company also faces increased competition from Chinese automaker BYD, which sold 426,000 electric vehicles in the second quarter.
The rise of competitors in the EV market presents additional challenges for Tesla, as it strives to maintain its leading position.
BYD’s strong sales figures highlight the competitive landscape and the growing demand for electric vehicles globally.
What we know
Elon Musk cofounded six companies including electric car maker Tesla, rocket producer SpaceX, and tunnelling startup Boring Company.
Despite a Delaware judge voiding Musk’s 2018 deal to receive options equaling an additional 9% of Tesla in early 2024.
Musk bought Twitter in 2022 for $44 billion, rebranding it as X, and owns an estimated 74% of the company. Forbes estimates Musk’s stake in X is now worth nearly 70% less than he paid for it, based on Fidelity’s valuation of the company as of December 2023.
In June, the billionaire successfully secured shareholder approval for his substantial compensation package.
Tesla shareholders reiterated their support for Musk’s $56 billion pay deal and gave the green light for the company’s relocation to Texas, reflecting strong confidence in Musk amid his ongoing legal battles.
