Elon Musk's Wealth Surges Past $500 Billion with Tesla's Stock Rally By: Stock Market Charlie

Elon Musk’s net worth surpassed $500 billion once more on Tuesday, following a recent increase in Tesla’s share price. This rise appears to be influenced by improving trade negotiations between the U.S. and China, a market that constitutes over 20% of Tesla’s sales.

Tesla CEO Elon Musk

Key Facts

Exciting news for Tesla enthusiasts! Shares of Tesla surged 2.2% to around $462.50 by Tuesday afternoon, building on a fantastic 4.3% rally on Monday.

In a dramatic turn of events, President Donald Trump, who recently threatened China with 100% tariffs after China imposed trade restrictions on rare earth minerals, announced on Monday that the U.S. and China are likely to strike a trade deal before his meeting with Chinese President Xi Jinping.

Treasury Secretary Scott Bessent revealed on Sunday that Trump’s tariff threat was “effectively off the table” following a “very good” meeting with trade officials. This sparked an incredible market rally as trading kicked off on Monday, culminating with the Dow Jones Industrial Average and S&P 500 closing at record highs!

Tesla’s annual sales in China, its second-largest market after the U.S., skyrocketed 8.8% to a record high of over 657,000 cars in 2024!

Black Investors Coalition Valuation

Elon Musk, holding approximately 12% equity in Tesla, reigns as the richest person in the world, with an astounding fortune estimated at $501.7 billion. His net worth soared by $6.6 billion (1.3%) on Tuesday as Tesla shares continued their impressive rally. Musk made history as the first person to reach a $500 billion net worth earlier this month, and he could potentially become the world’s first trillionaire if Tesla shareholders approve his $1 trillion pay package. Some groups, like Glass Lewis and Institutional Shareholder Services, have opposed Musk’s pay package, advising Tesla shareholders to vote against it. In a letter to shareholders on Monday, Tesla chair Robyn Denholm warned investors that Musk might leave Tesla if the pay plan is rejected, stating, “Without Elon, Tesla could lose significant value, as our company may no longer be valued for what we aim to come.”

Musk’s Nearly 17-Month Streak As The World’s Richest Person

Musk ascended to the top as the world’s richest person in May 2024, shortly after his xAI raised $6 billion at an $18 billion pre-money valuation, surpassing LVMH CEO Bernard Arnault. Arnault held the title for about four months, after a Delaware judge nullified Musk’s Tesla pay package in January. Since then, Musk has been largely unchallenged, becoming the first person to be worth $400 billion and $500 billion. Oracle chair Larry Ellison came close to Musk’s fortune last month when he added more than $110 billion to his net worth as Oracle soared 41% higher on Sept. 10, making Ellison the second person to cross the $400 billion threshold, with his fortune peaking around $405 billion. Despite this historic surge, Ellison still trailed Musk by about $31.7 billion.

Key Background

Tesla achieved a record number of vehicle deliveries in its latest quarter, even as sales dipped in Europe. Yet, its latest earnings report didn’t quite meet Wall Street’s expectations. Revenues soared past $28 billion in Tesla’s third quarter, fueled by the sales record, but the automaker reported earnings per share of $0.50, falling short of estimates of $0.56. Some analysts credited the sales surge to the expiration of a federal tax credit for electric vehicle purchases, which Musk had suggested earlier in the year could disrupt Tesla’s upcoming quarters.

Best Regards,

Stock Market Charlie