Elon Musk, the world’s wealthiest individual, has seen his net worth soar by $9.4 billion in a single day, bringing his total fortune to approximately $260 billion.
This significant gain is largely attributed to a robust performance by Tesla Inc., whose shares climbed by 7.36% to $243.92 on Thursday, according to the Forbes Real-Time Billionaires Index.
This surge follows the Federal Reserve’s decision to cut benchmark short-term interest rates by 0.5 percentage points, which was more aggressive than the anticipated 0.25 percentage point cut.
Despite this rally, Tesla’s stock still lingers $27.08 below its 52-week high of $271, reached on July 11.
While Tesla’s stock performed well, traditional automakers experienced mixed results. General Motors and Ford closed down 0.1% and 0.6%, respectively, despite earlier gains, while Stellantis rose 1.4%. In overseas markets, Toyota and Honda saw significant increases of 5.1% and 3.4%, benefitting from lower rates and a stronger dollar, which enhances profits on exports to the U.S.
Musk to become world’s first trillionaire
Musk’s trajectory suggests he may be on the path to becoming the world’s first trillionaire, with projections from Informa Connect Academy indicating he could achieve this milestone by 2027.
The firm notes that Musk’s wealth has been expanding at an impressive average rate of 110% annually, positioning him as the leading candidate to reach this historic financial benchmark-CNN first reported.
However, Musk is not without competition. Jensen Huang, CEO of Nvidia, which has seen explosive growth due to the burgeoning artificial intelligence sector, is also a contender. Informa predicts Huang could reach the trillion-dollar mark by 2028, with his net worth currently estimated at $104 billion, according to Bloomberg.
Additionally, Indian billionaire Gautam Adani is similarly poised to potentially achieve trillionaire status by the same year, intensifying the race among these financial titans.
The key to Musk’s ascent lies primarily in the performance of Tesla, the electric vehicle manufacturer he founded. With a market valuation of approximately $710 billion, Tesla has cemented its status as the most valuable automotive company in the world, eclipsing the combined worth of industry giants such as Coca-Cola, Bank of America, and Boeing.
Musk’s substantial stake in Tesla, nearly 13%, is valued at around $93 billion at current prices. Furthermore, he holds an additional 303 million stock options tied to a controversial compensation package that faced legal scrutiny but was ultimately approved by shareholders.
As Musk’s financial narrative unfolds, the sustainability of Tesla’s growth will be crucial in determining whether he can indeed reach the elusive trillion-dollar milestone ahead of his peers.
