Elon Musk's New Year Starts With a Bang: Tesla CEO Earns $34 billion in a Day, Know How

Elon Musk’s New Year Starts With a Bang: Tesla CEO Earns $34 billion in a Day, Know How

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Elon Musk’s Net Worth Surges: Tesla CEO Elon Musk started the new year on a high note. The billionaire philanthropist’s quest to become the richest person in 2022 continued as Musk added $33.8 billion to his fortune recently in a day according to reports. As Elon Musk became the wealthiest person in the world last year, he is trying to maintain that position, surpassing his contenders by a greater margin. The world’s richest man added $36 billion to his fortune earlier last year, following an announcement that Hertz Global Holdings Inc is ordering 100,000 electric vehicles from Tesla. This was the largest single-day gain in the history of the Bloomberg Billionaires Index.

Musk’s fortunes this time jumped as Tesla announced that it broke its previous record for deliveries of its electric vehicles. This resulted in the stock of the auto maker going up by a huge margin and thereby creating one of the biggest one-day jumps in terms of wealth.

Tesla Inc on Sunday reported record quarterly deliveries that far exceeded Wall Street estimates, riding out global chip shortages as it ramped up China production.

It was the sixth consecutive quarter that the world’s most valuable automaker posted record deliveries. Tesla shares were up 10 per cent to a one-month high in early trading on Monday. By the end of the day, Tesla shares rose to 13.5 per cent as per reports. The stock were trading at $1,199.78 on the day.

Tesla, led by billionaire CEO Elon Musk, delivered 308,600 vehicles in the fourth quarter, far higher than analysts’ forecasts of 263,026 vehicles.

Tesla’s October-December deliveries were up about 70 per cent from a year earlier and nearly 30 per cent higher from record deliveries the preceding quarter.

The jump in Tesla’s shares on Monday also had an effect on its owner, celebrity CEO Elon Musk’s net worth. Musk’s net worth rose by $33.8 billion on Monday to $304.2 billion, according to the Bloomberg Billionaires Index. This was far ahead from the second most richest person on earth, Jeff Bezos. The Amazon founder wat the moment was worth $196 billion, coming nowhere close to Musk in terms of wealth.

Tesla shares had dipped last November and early December following its record of touching the $1 trillion market cap. This was triggered by Musk’s move to sell his shares after he announced that he would reduce his stakes at the company to 10 per cent. The Tesla CEO currently holds 18 per cent stake to the company.

On December 3 last year, Elon Musk sold off 934,091 shares of the electric vehicle manufacturing company. The shares, worth $1.01 billion, were sold off to meet his tax obligations in connection with the exercise of options to get hold of 2.15 million shares.

Since November 8, the chief executive officer of Tesla, who also owns SpaceX, has sold shares worth $16.4 billion. This equals to 10.1 million shares in total. Reuters on December 29 reported that Musk has exercised all of his options expiring this year, signaling an end to his stock sales which triggered a fall in the share price of the world’s most valuable carmaker.

Before his stock selling spree, Musk at one point in 2021, had touched the peak of $340 billion net worth. This was more than the entire GDP of Pakistan.

Tesla shares lost about a quarter of their value after Musk in November asked his Twitter followers if he should sell 10 per cent of his holdings. They rebounded in December when he said he was almost done with stock sales, although the shares are still below the record closing high of $1,229.91 in November.

(With Reuters inputs)

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