Business

Elon Musk Climbs Ranking of World’s Richest People to Fifth Spot

The week opens shaking up the ranking of the world’s richest personalities, with Elon Musk, the CEO of Tesla, is now landing fifth from 20th some weeks ago. 

Musk among the top

On Monday, it was reported that the 49-year old car industry mogul’s net worth is more than $74 billion. This made him reach among the top of the list of richest people, alongside CEO of Facebook Mark Zuckerberg, cofounder of Microsoft Bill Gates, and CEO of Amazon Jeff Bezos.

Musk has jumped rankings from being No. 37 on January, to moving to the No. 31 spot sometime in March, according to Forbes. Having $25 billion earned him the 31st place in Forbes’ Billionaires list. This spectacular climb is all thanks to Tesla.

Earlier of July, Musk told Forbes that he doesn’t mind about his fortune’s worth, saying: “These numbers rise and fall, but what really matters is making great products that people love.”


Tesla’s increasing trust from investors

His fortune skyrocketed as his electric vehicle company has been seeing continuous boost in worth of shares, resulting to tripling of his net worth. Shares spiked by 9.5 percent on Monday, amounting to $1,643.00. This is a staggering increase of 60 percent in just a matter of weeks. Since the year began, its rise is about 300 percent.

The boost also made Tesla’s market cap reach $305.6 billion, making it the most valuable car company in the planet, surpassing brands like Ford and BMW. It has also outdone its rival, Toyota, previously at the beginning of the month. For comparison, the first quarter saw 103,000 Tesla vehicles while Toyota managed to produce 2.4 million vehicles at the same timeframe.

Overvalued?

Last month when shares of Tesla reached the $1,000 mark, analysts suggested that the Tesla stock is grossly overvalued. Adam Jonas of Morgan Stanley warned investors that there is danger in approaching the car company like a tech company. The analyst pointed out that risks of car businesses which seemed to be blindsided. He also cited that placing Tesla beside huge tech brands like Apple and Microsoft entails consideration of “significant inherent differences in Tesla’s business model and capital intensity.”

Phillip Malone

Phillip started his career as a freelance journalist who wanted to change the way traditional news reporting work. His venture, Feed Voice, is a move to introduce to the readers a fresh new wave of news reporting. As a learned founder of the news platform, he renders his genius news pieces based on Automobile niche.
Back to top button