Musk’s Net Worth Nearly $450 Billion as Tesla Stock Jumps

Published: 12/12/2024, 4:03:31 PM EST

Musk’s Net Worth Nearly $450 Billion as Tesla Stock Jumps — Elon Musk in Washington on Nov. 13, 2024. (Andrew Harnik/Getty Images)

Industrialist Elon Musk has seen his wealth surge over the past few weeks in tandem with the rising share price of Tesla, placing him further above on the wealthiest list.

As of Dec. 11, Musk’s net worth stood at $447 billion, according to data from the Bloomberg Billionaires Index. His wealth is more than 79 percent higher than the second-richest man, Amazon founder Jeff Bezos with a net worth of $249 billion.

Musk’s recent wealth surge came as shares of Tesla skyrocketed after President-elect Donald Trump won a second term in the White House. Musk has also been selected to co-lead the Department of Government Efficiency (DOGE) during Trump’s second term, along with former Republican presidential candidate Vivek Ramaswamy.

On Nov. 5, the day of the presidential election, Tesla stock closed at around $251. The company’s shares ended Dec. 11 at over $424, an increase of almost 69 percent. Musk’s net worth also rose more than 69 percent during this period. The Tesla CEO has a roughly 13 percent stake in the electric vehicle (EV) manufacturer.

Tesla’s $424 stock price is the highest ever for the company, beating the previous high set in November 2021. On Thursday, shares breached the $429 level before retreating to around $423 as of 12:05 p.m. EST.

Wealth-management company Wedbush remains positive about Tesla’s growth, expecting the automaker to hit $2 trillion in market capitalization next year, Wedbush said in a note, according to a Dec. 12 X post by Dan Ives, managing director of the company. The auto manufacturer currently has a market cap of $1.3 trillion.

Tesla’s potential in terms of autonomous vehicles is $1 trillion, Wedbush said. “FSD (full self-driving), autonomous, and the launch of Cybercab for early 2026 are keys for Tesla.”

The Cybercab, or robotaxi, is a five-seater autonomous vehicle with no pedals or steering wheel. Musk unveiled the Cybercab in October, and the vehicle is expected to cost less than $30,000, with running costs of $0.20 per mile.

However, it may not be all smooth sailing ahead for Tesla. In an October report, DBS Bank, for example, warned that “weaker-than-expected volume sales can lead to downside risks to Tesla’s earnings, especially as EV competition heats up, noting rising competition and impressive EV sales growth from China OEM leaders such as BYD,” the report stated, referring to original equipment manufacturers.

“Furthermore, the weakening macroeconomic environment in global/China markets can also pose headwinds to volume sales.”

Any negative impact on Tesla’s earnings could push down its share prices as well as Musk’s net worth. Last year, more than 22 percent of Tesla’s revenues came from China, according to data from Statista.

Tesla Safety Concerns, Musk’s Businesses

Tesla has faced scrutiny over its autonomous and FSD systems. In April, the company chose to settle a lawsuit filed by the family of a man killed in 2018 while driving a Tesla vehicle in Autopilot mode. Family members argued in court that the Autopilot software was defective, resulting in death.

An investigation into the matter by the National Transportation Safety Board found that the driver of the vehicle was potentially distracted for five seconds, which contributed to the crash. However, the agency pointed out that the system “did not provide an effective means of monitoring the driver’s level of engagement with the driving task.”

In October this year, the U.S. Department of Transportation’s National Highway Traffic Safety Administration initiated an investigation into the self-driving system of Tesla vehicles after a pedestrian was hit by a car.

While Tesla remains a key contributor to Musk’s enormous wealth, the entrepreneur has ownership in several major ventures. He is estimated to hold a 79 percent interest in social media platform X, and owns around 42 percent of shares in space tech enterprise SpaceX.

Musk has stakes in artificial intelligence venture xAI, neurotechnology company Neuralink, and an infrastructure business, The Boring Company.

Musk was the largest individual donor in this year’s presidential race, contributing more than $238.5 million to a political action committee that backed Trump.

DOGE is not a federal agency but an advisory board tasked with finding ways to slash excess regulations, cut down wasteful government expenditure, and restructure federal agencies.

Meanwhile, a Delaware judge re-asserted a previous decision that invalided his $56 billion Tesla pay package, despite shareholder approval.

From The Epoch Times