Tesla’s share price surged by more than 13% on Monday, October 25 and saw the electric vehicle company become the first car manufacturer to reach a $1 trillion market valuation in the wake of a hefty vehicle order from US car rental company, Hertz.
Hertz placed an order for 100,000 Tesla Model 3 vehicles to be delivered over the 14 months to the end of 2022, with the rental car company citing the move as part of efforts to keep up with consumer demand for electric vehicles and their newfound mainstream status.
But with Tesla founder and infamous tech guru Elon Musk already considered one of the world’s wealthiest billionaires, how has Tesla’s share price and market cap surge contributed to Musk’s net worth?
Here’s how much the SpaceX founder and Big Tech chief has made in the wake of Tesla’s price boom, and Tesla’s share price today following its market valuation success.
Why did Tesla’s market cap reach $1 trillion?
Tesla’s surge past a $1 trillion market cap has been realised following the electric car order for US and limited European rental from Hertz, as well as the company’s record success in the last quarter.
The company posted record revenues in its third quarter, with its latest quarterly earnings report placing Tesla’s automotive revenues at $12.6 billion (£8.47bn) and $1.62bn (£1.2bn) in net income weighted with US Generally Accepted Accounting Principles (GAAP).
Tesla’s GAAP net income saw a 389% year-on-year increase on 2020’s quarter three result of $331m.
The company received a boost from S&P Global Ratings following Tesla’s quarter three report, with the US market insight company upping Tesla’s previous BB credit rating in its investment rating index to BB+.
The slight increase saw Tesla move one step closer to achieving investment grade status and moving beyond its speculative rating status on S&P Global Ratings index following Tesla’s increased margins in earnings before interest, taxes, depreciation, and amortization (EBITDA).
Meanwhile, Hertz’s order of 100,000 Tesla Model 3 vehicles as part of its drive to ramp up its electric vehicle and charging infrastructure in the US and beyond tipped the company’s market cap over the $1 trillion mark on Monday (25 October).
What is Tesla’s share price today?
Tesla’s stock price closed at 1,024.86 a share on Monday night in a 12.66% rise on the previous 24 hours.
The almost 13% Tesla share price surge accounted for the bulk of its 16.79% increase in the last five days to Monday and a 29.51% rise over the last month.
As US stock markets opened on Tuesday, the company stock was continuing to rise and was trading up nearly 6% at 1,085.18 as of 3pm.
What is Elon Musk’s net worth?
Monday’s Tesla price surge saw Elon Musk retain his status as the richest person on the planet, but extend his net worth to even greater heights.
According to Bloomberg’s Billionaires Index, which offers daily rankings of the world’s billionaires calculated at the end of trading day in New York, Elon Musk saw a $36.2bn (£26.2bn) spike in his net worth at the end of Monday 25 October following Tesla’s trillion dollar market cap.
The whopping increase in Musk’s net worth accounts for the largest increase ever seen in a single day on the Billionaires Index, with Elon Musk’s total net worth now estimated at $289bn (roughly £209bn).
Forbes meanwhile estimated a slighter smaller sum for the Tesla founder of $255bn (£185bn), but still described him as ‘likely the richest person to ever walk the planet’ and worth more than Google founder Larry Page and Facebook creator Mark Zuckerberg combined.