Elon Musk is now the fourth richest person in the world after making $ 8 billion in one day

Elon Musk is now the fourth richest person in the world after raising $ 8 billion to his net worth in a single day as Tesla shares hit all-time highs.

Musk moved from fifth place to overtake Bernard Arnault, French billionaire and CEO of luxury brand Louis Vuitton.

Tesla shares jumped 11% on Monday and Musk’s net worth rose to $ 84.8 billion, making him the fourth richest person in the world, according to the Bloomberg Billionaires Index.

Tesla CEO now sits behind Facebook CEO Mark Zuckerberg, who has a net worth of $ 99 billion.

Elon Musk is now the fourth richest person in the world, having added $ 8 billion to his net worth in a single day as Tesla shares hit all-time highs.

Tesla shares rose again on Tuesday, 2.8%, and since the start of the year, the stock has risen 339%.

Wall Street analysts last week praised Tesla’s decision to split its richly priced stock into smaller chunks, saying it had the potential to extend a rally in its shares this year by making it easier for those to hold shares. individual investors.

Shares of the electric carmaker rose more than 6% at the start of the session. The stock, which was trading at around $ 1,467 before Wednesday’s bell, is among the most expensive on Wall Street.

The five-for-one split – Tesla’s first – comes at a time when analysts and investors have expressed concerns about the stock’s high valuation in the market despite fears of cash consumption.

“ This move makes sense for Tesla, as it will make its stocks cheaper and more accessible to young entry-level traders using platforms like Robinhood, ” said Jesse Cohen, senior analyst at Investing.com.

While stock splits are generally not events for investors, the reaction seen in Tesla’s stock after the announcement underscores the growing demand from Robinhood retail traders to enter growth technology names quick. ”

Five-day view of Tesla’s stock price shows the stock rally continues

Tesla’s move follows a four-for-one split announced by Apple Inc in late July, the first stock split in the iPhone maker since 2014.

“ We believe institutional investors have turned the corner in a positive direction as Musk & Co. has not only spoken but followed its Model 3 sales and profitability trajectory over the past year despite COVID Wedbush analyst Dan Ives said.

The world’s most valuable automaker posted stellar quarterly results last month, preparing it for inclusion in the S&P 500 Index.

Twelve of the 33 analysts covering the stock rated it “sell” or less, and only eight rated it “buy” or more. The median price target for the share is $ 1,300, up from $ 615 in May.