On Tuesday, the market cap of Tesla Inc blew past $500 billion as investors picked up their shares in the run-up to its S&P 500 debut, bringing the fortune of founder Elon Musk to $136 billion, according to the Bloomberg Billionaires Index. Musk holds 18% of the automaker, whose stocks this year have risen by more than 500%.
The announcement that Tesla will be listed as of December 21 on the prestigious S&P 500 index has added to the momentum. Tesla, currently the most valuable car manufacturer in the world, is also riding a wave of excitement from investors who see the future of electric car manufacturers as promising.
The stock of the California electric car manufacturer grew almost 5 percent on Tuesday, putting its market capitalization at $519 billion.
Tesla is the seventh most valuable stock on Wall Street, just behind Berkshire Hathaway, and since Nov. 16, when it was revealed that Tesla would join the S&P 500 index, its shares have rallied over 30 percent.
Index funds replicating the S&P 500 would have to purchase Tesla’s stock worth more than $50 billion ahead of its inclusion in the index on December 21. According to Goldman Sachs figures, after being included, actively managed mutual funds will be able to purchase another $8 billion of Tesla shares.
Musk said Tuesday that he is preparing to build the world’s largest battery cell factory near Berlin at the group’s electric car plant.
He became the world’s second-richest person on Monday, overtaking Microsoft founder Bill Gates, while, according to a Bloomberg list, Amazon boss Jeff Bezos remains in the lead. The Bloomberg Billionaire Index pegs the current income of Jeff Bezos at 183 billion dollars.
According to recent news, as his net worth increased to $129 billion, Elon Musk passed Bill Gates to become the second richest man in the world. Recently, He crossed Mark Zuckerberg to become 3rd richest man.
Mark Zuckerberg, the founder of the social media giant Facebook, is now in fourth place, with a net worth of $110.8 billion.
This year, thanks to a rise of almost 500 percent in Tesla’s shares, the owner of SpaceX and Tesla saw an increase of almost $87.8 billion.
Bloomberg Billionaire Index reports have revealed that Musk, who is very famous and also likes Twitter, has benefited the most out of all the billionaires.