Elon Musk Nears Breaking $340 Billion Wealth Record with Tesla Stock Surge

Elon Musk is on the brink of surpassing his $340 billion wealth milestone as Tesla stock continues its upward trajectory. His wealth has been supported by his involvement with Donald Trump during the presidential race.

Tesla Stock Surge Propels Elon Musk's Wealth

Elon Musk is edging closer to establishing a new wealth record with the surge in Tesla stock post the election. The CEO of both Tesla and SpaceX has seen a remarkable increase of $105 billion in his net worth this year, primarily driven by Tesla's impressive 41% surge. As of Tuesday's premarket, Musk's net worth reached around $342 billion, surpassing his previous peak in 2021.

Postelection Rally Boosts Musk's Net Worth

Following Tesla's postelection rally, Elon Musk, the wealthiest individual globally, saw a staggering gain of nearly $21 billion on Monday. This surge was attributed to a 9% increase in Tesla stock, elevating his net worth to $335 billion according to the Bloomberg Billionaires Index.

Tesla's Market Performance and Musk's Influence

Although Tesla shares initially rose by 2.6% in premarket trading on Tuesday before a subsequent decline of 4%, Musk's paper wealth momentarily reached $342 billion, surpassing his previous high of $340.4 billion in 2021. The significant rise in Tesla stock value following Donald Trump's presidential victory has been a key factor in Musk's current financial success.

Financial Dominance and Business Ventures

Elon Musk's net worth, now exceeding $342 billion, places him significantly ahead of the second-richest individual, Jeff Bezos, with a net worth of $228 billion. The surge in Tesla stock value can be attributed to investors betting on the company's future success, particularly due to Musk's close affiliation with the president-elect.

Mark Malek, the chief investment officer at Siebert, noted that Tesla stock has likely received a premium due to Musk's active involvement in Trump's campaign. Musk's public support for Trump and his substantial financial contributions towards the former president's re-election campaign have further solidified his ties with the political landscape.

Trump has even proposed the idea of Musk leading a government efficiency commission to streamline operations and reduce bureaucratic hurdles within the federal government. Despite Tesla's stock closing at $350 on Monday, which represents a 41% increase for the year, it still falls short of its all-time high of $410 on November 4, 2021.

Market Capitalization and Personal Fortune

Tesla’s market capitalization has soared to over $1.1 trillion, surpassing Warren Buffett's Berkshire Hathaway valued at $1 trillion. This remarkable growth has significantly increased Musk's personal wealth, with his 13% stake in Tesla now valued at $335 billion. His fortune is not far behind Netflix's market value of $344 billion and comfortably exceeds Salesforce's $327 billion.

Elon Musk's financial success and Tesla's market performance continue to capture attention, showcasing the impact of both business acumen and strategic partnerships on personal wealth and company valuation.

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By: tmohamed@insider.com (Theron Mohamed)
Title: Elon Musk Nears Breaking $340 Billion Wealth Record with Tesla Stock Surge
Sourced From: www.businessinsider.com/elon-musk-net-worth-wealth-tesla-stock-trump-election-ev-2024-11
Published Date: Tue, 12 Nov 2024 11:42:36 +0000