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Elon Musk overtakes Bill Gates to become the second richest person in the world after his net worth increased by $ 100 billion in one year – a five-fold increase to a total of $ 127.9 billion – after the Tesla’s stock price soared 500%
- Elon Musk added more than $ 100 billion to his net worth this year at $ 127.9 billion
- He overtook Bill Gates as the second richest person in the world with $ 127.7 billion
- Musk’s fortune results from massive increase in Tesla’s stock, which has soared over 500% so far this year
- Tesla stock rose 6.58% to a record close of $ 521.85 on Monday
- He saw Musk’s fortune increase by $ 7.2 billion in a single day
- Musk started the year in 35th place on the Bloomberg Billionaires Index
Billionaire entrepreneur Elon Musk passed Bill Gates to become the second richest person in the world just weeks after passing Mark Zuckerberg to become the third richest.
This means that only Amazon founder Jeff Bezos is now ahead of him in the rankings. In January, it ranked 35th on the Bloomberg Billionaires Index.
Musks’ wealth exploded after his electric car company Tesla was selected to join the S&P 500.
Tesla will enter the S&P 500, a stock index that measures the performance of 500 large companies listed on the US stock exchange, on December 21 after failing to make the cut in September.
Elon Musk added over $ 100 billion to his net worth this year to reach $ 127.9 billion
Musk overtook Bill Gates as the second richest person in the world with $ 127.7 billion
The 49-year-old’s net worth soared from $ 7.2 billion to $ 127.9 billion, driven by a surge in Tesla’s share price, according to Bloomberg.
The South African-born billionaire owns a 20% stake in Tesla, which has seen its share price more than five-fold so far this year.
This has been a very successful year for Musk – who saw his rocket company SpaceX send four astronauts into space earlier this month, fulfilling his first commercial contract with the US space agency Nasa.
This year alone, Musk has seen his fortune increase by $ 100.3 billion.
About three-quarters of Musk’s net worth is made up of Tesla stock, which is valued more than four times as much as his stake in Space Exploration Technologies Corp., or SpaceX.
Tesla’s share price has climbed more than 500% so far in 2020, which has largely contributed to Musk’s wealth.
As it stands, Tesla is already the world’s most valuable automaker, although it only makes a fraction of the number of vehicles produced by more established manufacturers such as General Motors, Volkswagen, Ford and Toyota. .
Tesla is now valued at more than Disney, Toyota, and Coca-Cola and has a market cap of nearly $ 500 billion.
To be eligible to join the S&P 500, a company must be based in the United States, have a market capitalization of at least $ 8.2 billion, be liquid, and at least half of its shares must be publicly accessible, according to CNN. Companies must also report four consecutive quarters of profits.
Tesla reported its fifth straight quarter of profit with third quarter revenue of $ 8.77 billion.
Musk’s position at number two means Bill Gates is pushed to third for just the second time in eight years.
Gates was ousted from the number one spot he held for years, by Amazon.com founder Jeff Bezos in 2017.
Gates’ net worth of $ 127.7 billion would be much higher if he hadn’t donated so many to charity over the years.
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