Elon Musk is now world's wealthiest person

Electric car and space exploration entrepreneur just overtook the Amazon boss after Tesla shares surged 8% overnight.

| More on:
dogecoin price Tesla CEO Elon Musk

Tesla CEO Elon Musk. Image source: Tesla

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Tesla Inc (NASDAQ: TSLA) chief executive Elon Musk is now the richest person on the planet, after the company's shares surged again overnight.

The electric car maker's stocks shot up a stunning 7.94% Friday morning Australian time. This allowed the South African-born Musk to overtake Amazon.com Inc (NASDAQ: AMZN) founder Jeff Bezos into the top spot.

Tesla shares were on an absolute tear in 2020, appreciating 743% during 2020. 

Musk, whose wealth is largely tied to his ownership of Tesla shares, saw his personal worth skyrocket more than US$150 billion in the past year, according to Bloomberg.

Bezos became the world's richest in 2017 after more than 20 years running Amazon. Since then he has undergone a divorce from his wife MacKenzie Scott, which deducted about a quarter of his Amazon ownership.

Scott herself instantly became one of the wealthiest people on earth, and currently sits at 23rd spot.

Early on Friday morning Australian time, Musk tweeted "How strange" in response to the news that he is now the earth's richest person.

He then swiftly posted "Well, back to work…"

Is Tesla's incredible rise too good to be true?

Tesla, by market capitalisation, is now worth as much as the 8 biggest petrol car makers on the globe.

Despite COVID-19, the company ascended to this confounding valuation on the back of investors' enthusiasm that electric vehicles are the way of the future.

Then late in the year Tesla made it onto the S&P 500 Index (INDEXSP: .INX). This accelerated its growth even further as index funds were forced to buy up its stocks.

Legendary investor and GMO co-founder Jeremy Grantham this week used Tesla as an example as to why share markets are in a bubble about to pop, just like 1929 and 2000.

"As a Model 3 owner, my personal favorite Tesla tidbit is that its market cap, now over US$600 billion, amounts to over US$1.25 million per car sold each year versus US$9,000 per car for General Motors Company (NYSE: GM)," he said in a letter to investors.

"What has 1929 got to equal that?"

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Tony Yoo owns shares of Amazon. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A happy man and woman on a computer at Christmas, indicating a positive trend for retail shares.
Opinions

2 ASX 200 shares I'd want to receive as a present today

Merry Christmas! Are there any stocks under your tree?

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Avita Medical, GenusPlus, Mesoblast, and Polynovo shares are storming higher

These shares are having a better day than most today. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Charter Hall Retail, DroneShield, FBR, and St Barbara shares are tumbling today

These shares are having a tough time on Tuesday. But why?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these stocks.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Broker Notes

2 of the best ASX shares to buy in 2025

Bell Potter is feeling bullish on these shares as the new year approaches.

Read more »

A happy man and woman on a computer at Christmas, indicating a positive trend for retail shares.
Share Market News

5 things to watch on the ASX 200 on Tuesday

Will the market give investors a little Christmas present today?

Read more »

Young boy in business suit punches the air as he finishes ahead of another boy in a box car race.
Opinions

Why I think these 2 ASX 300 stocks will beat the market in 2025

I’m very optimistic about a few ASX growth shares.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why EML, GQG Partners, IGO, and Integrated Research shares are sinking today

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of…

Read more »