According to Bloomberg’s Billionaires Index, Elon Musk is currently the fourth richest person in the world, rising behind Facebook’s Mark Zuckerberg, Microsoft’s Bill Gates and Amazon’s Jeff Bezos.
With the latest Bloomberg numbers putting the auto entrepreneur at $ 90.3 billion in net worth, he’s poised to overtake Zuckerberg if Tesla stock continues to rise, as it did last year.
Bloomberg estimates that Musk’s net worth has grown by $ 62.8 billion since the start of the year. On Monday alone, Tesla stock rose 11 percent, adding nearly $ 8 billion in value to Musk.
Elon Musk has benefited more from the pandemic than his colleagues, according to the Institute for Policy Studies. The think tank estimates its net worth tripled from $ 24.6 billion on March 18 to $ 73 billion on August 13, an increase of $ 48.5 billion, or 197 percent.
Musk’s wealth comes from a wide variety of sources. He currently owns around 20 percent of Tesla shares. This stake is worth more than $ 50 billion, according to market research company Wealth-X.
He is also involved in aerospace company Space-X and has multi-billion dollar real estate investments.
Analysts’ assessment of the Tesla phenomenon suggests that the automaker’s booming success may not continue and therefore Musk’s net worth could shrink if confidence in the market wanes.
“Fund managers held Tesla stock that had been between $ 200 and $ 400 for years, then it hit that phenomenal spike to $ 900 and crashed during the corona crisis, sending it back down,” said Kevin Cook, senior equity strategist at Zacks Investment Research, told Newsweek. “When the stock market recovered from the initial shock, it rose back to $ 1,000. Many fund managers were likely relieved to get their money back.”
The variable nature of the stock has caused the value of Musk to fluctuate. Even the billionaire questioned market valuations, saying in May that Tesla stock was “too high”.
Tesla share price is imo too high
– Elon Musk (@elonmusk) May 1, 2020
Even so, investors and analysts are still optimistic. In January, Ark Invest’s Catharine Wood shifted her price target from $ 6,000 to $ 7,000 for Tesla.
At the bottom of their rating it said, “There’s a 25 percent chance Tesla could be worth $ 1,500 or less by 2024.”
If that valuation is correct, it would hurt Musk’s net worth.
|Most analysts wouldn’t be as confident of such gains, but Wood’s goal is based on a five-year view and confidence in developments in the autonomous carpooling, according to Cook. These developments could challenge established market controllers Uber and Lyft. [not sure how to get this out of the box!]|
A January 31 note from Sam Korus for Ark Invest stated: “A fully autonomous taxi network could completely break the business model of a traditional car manufacturer.
“Tesla could move from a one-time transaction at hardware-like margin model to a recurring transaction at software-like margin model that charges passengers per mile and charges a platform fee.”
In a July 23 announcement, Ryan Brinkman, Head of US Autos Research at JP Morgan, said: “Despite a modestly better 2Q, TSLA stocks are still grossly overvalued, as shown by comparisons with industry leaders Toyota and VW, who together are underpriced are called Tesla. “
Chicago engineer and tech entrepreneur Elon Musk of The Boring Company speaks during a news conference on June 14, 2018 in Chicago about building a high-speed transit tunnel in Block 37. Musk’s net worth is due to the surge in Tesla stock during the pandemic soared.
Joshua Lott / Getty Images
Recently, Musk was given the option to buy and sell additional Tesla shares valued at $ 2.1 billion. The prerequisite for this is that Tesla achieve a market capitalization of 150 billion US dollars over a period of six months. The BBC reported in July that the board has not yet certified this option.
The best estimates of Musk’s net worth depend on stock market valuations, but if the stock plunges a significant portion of his fortune could be wiped out overnight.
Speaking of his net worth, Musk recently emailed Forbes, “I really don’t care. Those numbers go up and down, but what really matters is making great products that people love. “