Source: Finance Association
① On Monday, Tesla's stock price recorded its biggest increase in more than three years, and Musk's net worth also achieved the biggest increase in more than two years in the past five days. ② This has caused Wall Street analysts who have looked down on Tesla in recent months to shout: He's back!
After experiencing a continuous decline in stock prices in recent months, Tesla CEO Musk's weekend trip to China clearly gave the market a huge surprise.
On Monday, Tesla's stock price recorded its biggest increase in more than three years, and Musk's net worth also achieved the biggest increase in more than two years in the past five days. This has made Wall Street analysts who have looked down on Tesla in recent months also shouted: He's back!
“Musk is back”
On April 29, Tesla CEO Musk ended his visit to China. On the day he arrived in China on the 28th, the China Association of Automobile Manufacturers announced that the cars of 6 companies, including Tesla, met the 4 data security compliance requirements. In response, foreign media generally believe that this has cleared up a major obstacle for the FSD system to enter the world's largest automobile market.
Sources said Tesla will deploy its FSD autonomous driving service for the Chinese market based on lane-level navigation and maps provided by Baidu.
Inspired by this news, Tesla's stock price surged 15.31% on Monday. It was the biggest increase in more than three years. As the world's largest automobile market, if approved to deploy driver assistance systems in China, it would be of great significance to Tesla.
Morgan Stanley auto industry analyst Adam Jonas (Adam Jonas), who only recently lowered Tesla's price target, published a report called “He's Back” on Monday and wrote:
“Tesla's potential mitigation with China in fields such as autonomous driving/FSD is surprising and worth more research and understanding. Currently, Musk's launch of FSD in China has won China's blessing, which seems to address people's inherent concerns about Tesla's profits in China (we estimate that China accounts for as much as half of the profits).”
Jonas also mentioned that since the Delaware judge rejected Elon Musk's salary package, investors' concerns about whether Musk is “fully committed” to Tesla have had a serious impact on Tesla's stock price.
In this context, Musk's trip to China shows that he values Tesla, and is also of greater significance, as it mitigates concerns that he will be distracted by “the wider Musk ecosystem (SpaceX/X.ai, etc.).”
Musk's net worth has soared sharply
According to the Bloomberg Billionaires Index, after falling to the lowest level in nearly a year, Musk's net worth has surged again in recent days: over the past five days, his net worth has increased by US$37.3 billion (approximately RMB 269.761 billion). This is his biggest weekly gain since March 2022.
On Monday alone, Musk's fortune increased by $18.5 billion. After surpassing Mark Zuckerberg last week, he is now the third-richest man in the world with a net worth of $2015 billion and is close to replacing the second-richest man Jeff Bezos.
Musk's wealth mainly comes from his shares in Tesla, as well as his shares in Space Exploration Technology and Company X.
Musk's net worth once soared like a rocket in 2020 and 2021, but after Musk agreed to buy Twitter for $44 billion in March 2022, his net worth curve began to fluctuate up and down for most of this year.
Prior to the recent rebound, Tesla was the worst performing stock in the S&P 500 index for most of this year due to continuous car price cuts and unexpected declines in deliveries. Meanwhile, according to a March valuation of the Fidelity Blue Chip Growth Fund, which invests with Musk, the company's value has fallen by about 73% since Musk bought X two years ago.
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