Tesla Inc was set to surpass $500 billion in market value on Tuesday, as its shares extended a meteoric comeback that has sent stocks soaring more than six times this year. The 49-year-old businessman’s advancement of wealth has been driven in large part by Tesla shares, which comprised about three-quarters of his net worth, which are valued more than four times as much as his stake in Space Exploration Technologies Corporation or SpaceX.
Shares of the electric car maker soared to nearly 28 percent as the S&P Dow Jones Indices began confirming that they would add the company to the Wall Street benchmark beginning Dec. 21. Its shares soared 3.5 percent to $540.53 in premarket trading and will have to open above $527.48 to hit the $500 billion mark.
Musk’s breakthrough comes just for the second time in the index’s eight-year history that places Bill Gates, co-founder of Microsoft Corp., lower than number two. He also ranked No. 1 for years before being surpassed by Amazon.com Inc. founder Jeff Bezos in 2017. But Gates’ net worth of $127.7 billion would be much higher if he hadn’t donated so prodigiously to foundations over the years. He has donated more than $27 billion to the foundation that bears his name since 2006.
With this latest development, Tesla, as it has been, becomes by far the most valuable automaker in the world, even though its production is only a fraction of General Motors Co., Toyota Motors Corporation, or Volkswagen AG.
A major factor causing shares of other electric vehicle (EV) manufacturers to skyrocket in recent months as well is that President-elect Joe Biden was promoting electric vehicles as a priority during his campaign.
2020 has been a lucrative year for the richest people in the world. So despite the fact that there is a pandemic and widespread layoffs disproportionately affecting the world’s working class and poor, members of the Bloomberg index have collectively gained 23%, or 1.3 trillion dollars since the beginning of the year.