Elon Musk's net worth is soaring after falling to its lowest level in almost a year.
The net worth of the world's third-richest man has increased by $37.3 billion over the past five days, according to the Bloomberg Billionaires Index. This is his biggest weekly gain since March 2022, and just before he agreed to buy Twitter for $44 billion, it was one of the biggest leveraged buyout deals in history. Since then, his wealth has often plummeted after experiencing a spectacular rise in 2020 and 2021.
On Monday, it was reported$Tesla (TSLA.US)$With China's approval in principle to deploy its driver assistance systems in the world's largest automobile market, the company's stock price recorded the biggest increase in more than three years. There was news last week that the electric car maker plans to launch a lower-priced electric car as early as this year, easing market concerns about Tesla's disappointing profits.
On Monday alone, Musk's wealth increased by $185 billion, ranking 13th in the Bloomberg Wealth Index for single-day gains among market-driven billionaires and 7th in Musk's wealth in a single day. His net worth is currently around $2015 billion, and after surpassing META founder Mark Zuckerberg last week, he is about to surpass second-ranked Amazon founder Jeff Bezos.
Musk's wealth mainly comes from his Tesla shares and his shares in Space X and X (formerly Twitter).
Prior to the recent rise, Tesla was the worst performing stock in the S&P 500 for most of this year due to price cuts and unexpected declines in car deliveries. Meanwhile, according to the March valuation of the Fidelity Blue Chip Growth Fund, which invests with Musk, the value of X has fallen by about 73% since Musk bought X two years ago.
One highlight of Musk's wealth is SpaceX, the company's value increased by more than 40% between mid-2022 and the end of 2023.
The billionaire is also facing domestic pressure in the US. Tesla asked shareholders to vote again on Musk's $56 billion compensation plan, which was declared invalid by a Delaware court earlier this year. According to the Bloomberg Wealth Index, if rejected, Musk risks losing his stock options, which account for nearly a quarter of his net worth.
The US Supreme Court also rejected Musk's appeal in the “Twitter Babysitter” case on Monday, retaining his agreement with the US Securities and Exchange Commission to have an in-house lawyer pre-approve his social media posts about Tesla.
Editor/Jeffrey