Uncategorized

Elon Musk makes history. His one-day wealth gain

Tesla CEO Elon Musk’s personal fortune jumped by $36.2 billion ( ₹2.71 lakh crore) Monday after Hertz Global Holdings placed an order for 100,000 Teslas. Tesla shares surged as much as 14.9% to $1,045.02, making it the world’s most valuable automaker according to Reuters calculations.

Musk’s 23% stake in the newly minted trillion-dollar company is now worth about $289 billion, according to Refinitiv. 

In addition, Musk is a major shareholder and CEO of rocket maker SpaceX, a private company worth $100 billion as of an October secondary share sale, according to a CNBC report. Musk’s total net worth of $288.6 billion is now greater than the market value of Exxon Mobil Corp. or Nike Inc.

It’s the biggest one-day gain in the history of the Bloomberg Billionaires Index, eclipsing Chinese tycoon Zhong Shanshan’s $32 billion surge last year when his bottled-water company, Nongfu Spring Co., went public. 

Musk’s fortune increased by $119 billion in 2021.

Tesla is the first carmaker to join the elite club of trillion-dollar companies that includes Apple Inc, Amazon.com Inc, Microsoft Corp and Alphabet Inc.

The maker of the Model 3 sedan — the top-selling electric car worldwide — is now the second fastest company ever to reach this mark, taking just over 11 years since its public debut in June 2010. Facebook Inc. did it faster, although its market capitalization is now below $1 trillion as the stock has sold off over the past two months. 

Musk receives no salary at Tesla: his pay package provides 12 options tranches that vest when Tesla’s market capitalization and financial growth hit a series of rising milestones. The options let Musk buy Tesla shares at $70 each, a discount of more than 90% from their current price.

Last week, Tesla reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $3.2 billion, up 77% from the year before. That was enough to vest his seventh options tranche, worth over $8 billion as of Monday.

Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
Download
our App Now!!


Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
%d bloggers like this: