The wealth gain Tesla CEO Elon Musk has recorded in 2020 exceeds the entire net worth of investor Warren Buffett.
Tesla CEO Elon Musk is now worth $108 billion. Year-to-date, Musk’s net worth has grown by a whopping $80.7 billion, making him the largest wealth gainer in 2020.
Musk’s gain is higher than Warren Buffett’s entire net worth of $80.5 billion.
Most of Elon Musk’s wealth is concentrated in Tesla, where his stake now stands at 20.8%. Tesla stock’s extraordinary price surge drives this year’s wealth gain.
Just this year, Tesla’s stock has surged over 400%, from $85 a share (after adjusting for the recent split) to over $400.
The stock surge is partly attributed to Tesla reporting four consecutive quarters of profitability. This raised the prospects of Tesla being included in the S&P 500 Index, a fact which would have required institutional investors to invest in the electric carmaker’s stock.
Tesla’s stock surge has also been driven by the introduction of new models and the building of manufacturing plants.
Additionally, the rapid rise in Musk’s wealth comes amid high expectations that Tesla will announce groundbreaking developments during the EV maker’s highly anticipated Battery Day.
The event, which will take place alongside Tesla’s annual shareholder meeting, could unveil advancements in battery technology. Such developments could improve the price, range, and lifespan of electric cars, boosting Tesla’s prospects.
These developments have been gleaned from Musk’s tweets and public statements over the last few months. During the most recent earnings call, Musk pleaded with miners to extract more nickel–a commodity used in manufacturing battery cells.
Musk hinted recently that a battery with double the energy storage capacity is on the way. All these developments would make electric cars more affordable and more practical. This would wipe out the current advantages internal combustion engines have over electric vehicles.
Ahead of the event, Musk seemed to taper expectations. He tweeted that it would take Tesla at least 24 months before the new technological advancements announced on Battery Day would be fully implemented.
Disclaimer: The author holds no investment position in any of the above-mentioned securities.
Last modified: September 23, 2020 2:31 PM