Elon Musk's wealth swells further as Tesla market value crosses $500 billion1 min read . Updated: 25 Nov 2020, 10:43 AM IST
- The announcement that Tesla will be listed on the prestigious S&P 500 index as of December 21 has added to the momentum.
Tesla Inc's market value blew past $500 billion on Tuesday as investors snapped up its shares in the run-up to its debut in the S&P 500, pushing founder Elon Musk's wealth to $136 billion, according to Bloomberg Billionaires Index. Musk owns 18% of the automaker whose stocks has surged over 500% this year.
The announcement that Tesla will be listed on the prestigious S&P 500 index as of December 21 has added to the momentum. Tesla, currently the world's most valuable automaker, Tesla is also riding a wave of enthusiasm from investors who see the electric car maker's future as bright.
On Tuesday, the California electric carmaker's stock rose nearly 5%, putting its market capitalization at $519 billion.
Tesla is Wall Street's seventh most valuable company, just behind Berkshire Hathaway, and its shares have rallied over 30% since Nov. 16, when it was announced Tesla would join the S&P 500 benchmark.
Index funds that replicate the S&P 500 will have to buy more than $50 billion worth of Tesla's stock ahead of its inclusion to the index on December 21. According to Goldman Sachs estimates, actively managed mutual funds could buy another $8 billion of Tesla shares after it is added.
Musk said Tuesday that he plans to build the world's largest battery-cell factory at the group's electric car plant near Berlin.
On Monday, he became the second richest person in the world, overtaking Microsoft founder Bill Gates, though Amazon boss Jeff Bezos remains in the lead, according to a Bloomberg ranking. Bloomberg Billionaire's Index pegs Jeff Bezos' current wealth at $183 billion. (With Agency Inputs)