The global economic downturn has not stopped Elon Musk from becoming the third-richest person on the planet.
Tesla (NASDAQ:TSLA) CEO Elon Musk is now the world’s third-richest person. His net worth climbed to $115 billion on Monday–the first day of Tesla shares started trading at their new split-adjusted price.
The billionaire has now surpassed Facebook CEO Mark Zuckerberg in net worth for the first time. This comes weeks after Musk overtook the Oracle of Omaha Warren Buffett.
This is arguably Tesla’s best year in terms of stock performance. In late April, the electric vehicle manufacturer had a market capitalization of $130 billion. Less than five months later, Tesla’s market cap has nearly quadrupled.
Year-to-date, the stock has surged 480%. Tesla is now the sixth-largest publicly-traded U.S. company. It is the world’s most valuable car company by far.
Elon Musk, who owns just over 20% of Tesla, has seen his net worth rise by $87.8 billion year-to-date. In January, he was ranked as the world’s 35th richest person with a net worth of just under $30 billion.
Musk has added the most to his net worth this year. Amazon founder Jeff Bezos is a close second, having added $87.6 billion to his net worth in 2002.
Musk’s $115 billion net worth is about a third of the GDP of South Africa, his country of birth.
The rise in Tesla’s stock is tied to a surge in bullishness on Wall Street. Last month, for instance, Tesla was upgraded by Bank of America Securities and Morgan Stanley.
Jefferies raised the stock price target from $1,200 to $2,500, while Wedbush Securities raised the bull-case scenario target to $3,500 from $2,500.
The bullish sentiment comes ahead of Tesla being potentially included in the S&P 500 Index. This could draw in more institutional investors, spiking demand for the stock.
Currently, institutions own only about 58% of Tesla’s stock. This is low compared with other companies with a similar market cap.
Investors are also excited about Tesla’s Batter Day event on September 22. Here, the EV maker could announce developments that cement Tesla’s commanding lead in battery technology.
Competition is growing both from established carmakers and newcomers. By all indications, the battle will be fought fiercely.
Ahead of Tesla’s Battery Day, for instance, EV startup Lucid Motors will launch a luxury sedan that beats Tesla’s premium offerings in terms of range, charge time, and other features.
Disclaimer: This article represents the author’s opinion and should not be considered investment or trading advice from CCN.com. Unless otherwise noted, the author has no position in any of the stocks mentioned.