The world’s richest man, Elon Musk, saw his net worth surge by $12 billion on Tuesday as Tesla’s shares continued to climb following the electric vehicle maker’s impressive delivery report.
Tesla’s shares hit just under $229 before midday, contributing to a nearly 25% rally since the stock dipped below $183 on June 24.
According to the Forbes Billionaire Index, Musk’s net worth now stands at $240.2 billion while his 12% stake in Tesla increased to $160 billion, up from approximately $150 billion at Monday’s market close.
The weeklong rally has added about $30 billion to his stake.
Tesla’s latest report showed the delivery of nearly 444,000 vehicles in the second quarter, marking a 14.8% increase over the previous quarter despite a 4.8% year-over-year decline.
This figure slightly surpassed analysts’ estimates of about 439,000 deliveries, according to FactSet, boosting investor confidence and driving the stock upward.
Despite Tesla’s shares experiencing significant volatility in the first half of 2024, plunging below $140 in April after peaking at over $250 at the start of the year, the company’s ability to exceed expectations has been a significant factor in its recent performance.
The stock fell earlier this year after Tesla reported a 48% decline in first-quarter profits and a 9% drop in revenue, alongside delivering 70,000 fewer vehicles than expected, marking its first negative quarterly delivery growth in four years.
Several factors have influenced Tesla’s vehicle deliveries this year, including supply chain issues and an arson attack at the company’s Berlin factory.
Despite these challenges, Tesla’s recent performance indicates a potential turnaround as the company adapts to and overcomes these obstacles.
The company also faces increasing competition from Chinese automaker BYD, which sold 426,000 electric vehicles in the second quarter.
The rise of competitors in the EV market presents additional challenges for Tesla as it strives to maintain its leading position.
BYD’s strong sales figures highlight the competitive landscape and the growing global demand for electric vehicles.
Elon Musk, who co-founded six companies including Tesla, SpaceX, and the tunneling startup Boring Company, remains a prominent figure in the tech industry.
Despite a Delaware judge voiding Musk’s 2018 deal to receive options equaling an additional 9% of Tesla earlier this year, Musk’s influence and leadership continue to drive investor confidence.
In 2022, Musk purchased Twitter for $44 billion, rebranding it as X.
However, Forbes estimates that Musk’s stake in X is now worth nearly 70% less than he paid for it, based on Fidelity’s December 2023 valuation.
In June, Musk successfully secured shareholder approval for his substantial compensation package.
Tesla shareholders reiterated their support for Musk’s $56 billion pay deal and approved the company’s relocation to Texas.
