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Elon Musk Is Now A Centibillionaire with Tesla Breaking the $500 Billion Market Value Mark

Tesla Inc was set to surpass $500 billion in market value on Tuesday, as its shares extended a meteoric comeback that has sent stocks soaring more than six times this year. The 49-year-old businessman’s advancement of wealth has been driven in large part by Tesla shares, which comprised about three-quarters of his net worth, which are valued more than four times as much as his stake in Space Exploration Technologies Corporation or SpaceX.

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Shares of the electric car maker soared to nearly 28 percent as the S&P Dow Jones Indices began confirming that they would add the company to the Wall Street benchmark beginning Dec. 21. Its shares soared 3.5 percent to $540.53 in premarket trading and will have to open above $527.48 to hit the $500 billion mark.

Musk’s breakthrough comes just for the second time in the index’s eight-year history that places Bill Gates, co-founder of Microsoft Corp., lower than number two. He also ranked No. 1 for years before being surpassed by Amazon.com Inc. founder Jeff Bezos in 2017. But Gates’ net worth of $127.7 billion would be much higher if he hadn’t donated so prodigiously to foundations over the years. He has donated more than $27 billion to the foundation that bears his name since 2006.

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With this latest development, Tesla, as it has been, becomes by far the most valuable automaker in the world, even though its production is only a fraction of General Motors Co., Toyota Motors Corporation, or Volkswagen AG.

A major factor causing shares of other electric vehicle (EV) manufacturers to skyrocket in recent months as well is that President-elect Joe Biden was promoting electric vehicles as a priority during his campaign.

2020 has been a lucrative year for the richest people in the world. So despite the fact that there is a pandemic and widespread layoffs disproportionately affecting the world’s working class and poor, members of the Bloomberg index have collectively gained 23%, or 1.3 trillion dollars since the beginning of the year.

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