Surging Tesla share price propels Elon Musk to world's richest person again

Here's how Elon Musk got his fortune back.

| More on:
Happy woman on her phone while her electric vehicle charges.

Image source: Getty Images

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

The share market moves around a lot. We, investors, know this, since enduring the volatility of the share market is one of the hardest parts of investing. But shares going up and down have more consequences than just the balances of our investment portfolios and super funds.

It more or less determines the richest people in the world. Billionaires typically don't keep their money in the bank. They invest in income-producing assets that compound wealth over time – no one saves their way to a billion.

Those income-producing assets could be property or private companies. But, more often than not, they are publically-listed shares. That is certainly true of the current five richest people in the world.

Elon Musk, CEO of Tesla, SpaceX, Twitter, Neuralink and The Boring Company, had an exceptionally rough year last year. Musk had the dubious honour of being the first human in history to lose US$200 billion in personal wealth last year.

This was largely driven by the collapse we saw in the Tesla share price, of which Mussk has a huge chunk of his wealth housed.

Tesla tanked by more than 65% in 2022, which led to LVMH's Bernard Arnault overtaking Musk as the world's richest person in the later months of last year.

Created with Highcharts 11.4.3Tesla PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

But Arnault's spot at the top of the greasy pole wasn't to last.

Elon Musk is back as the world's richest person

Today, Elon has his crown back. After a brief stint of being only the world's second-richest person, Musk has just reclaimed his gold medal. And he can thank Tesla stock, that same company that put such a big dent in his net worth last year.

While Tesla stock cratered in 2022, it has seen a shocking renaissance in 2023 thus far. Since 6 January, the Tesla stock price has risen by a whopping 85%, going from US$113 to the US$207.63 it is commanding today.

This has catapulted Musk back up to the top of the rich list. According to the Bloomberg Billionaires Index, today, Musk's fortune stands at US$187 billion. That's just ahead of Arnault's US$185 billion.

Here's a list of the top five richest people, their fortunes as they currently stand, and the companies they are associated with:

BillionaireFortune (US$)Source of Wealth
Elon Musk$187 billionTesla, SpaceX, Twitter
Bernard Arnault$185 billionLVMH
Jeff Bezos$117 billionAmazon
Bill Gates$114 billionMicrosoft
Warren Buffett$106 billionBerkshire Hathaway
Source: Bloomberg

So we'll have to wait and see how long Musk's stint as the world's richest person lasts this time.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon.com, Berkshire Hathaway, Microsoft, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Berkshire Hathaway, Microsoft, and Tesla. The Motley Fool Australia has recommended Amazon.com and Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A male electricity worker in hard hat and high visibility vest stands underneath large electricity generation towers as he holds a laptop computer and gazes up at the high voltage wires overhead.
Share Market News

ASX 200 utilities shares outperform: Are investors switching to defensives?

The utilities sector was the best performing sector by a wide margin last week.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Broker Notes

These ASX 200 shares could rise 25% to 60%

Analysts think these shares are top buys and could rise materially.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finished the trading week on a sour note today.

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

4 ASX 200 stocks smashing the benchmark this week

Investors are sending these four ASX 200 stocks soaring this week. But why?

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Broker Notes

Bell Potter says this growing ASX 200 stock can rise over 40%

Big returns could be on the cards for buyers of this stock.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Share Market News

Which delivered superior returns in FY25: CSL, A2 Milk, or Telstra shares?

We review the share price growth and dividend income delivered to investors in FY25.

Read more »