Elon Musk’s fortune soars $36bn in a day on Hertz order

Tesla shares rose 13% on news of the Hertz order, pushing its market value past $1 trillion.
Image: Bloomberg

Elon Musk’s personal fortune jumped by $36.2 billion Monday after Hertz Global Holdings Inc. placed an order for 100 000 Teslas and filings showed a fresh tranche of options in his moonshot pay package vested.

It’s the biggest one-day gain in the history of the Bloomberg Billionaires Index, eclipsing Chinese tycoon Zhong Shanshan’s $32 billion surge last year when his bottled-water company, Nongfu Spring Co., went public. Musk’s net worth of $288.6 billion is now greater than the market value of Exxon Mobil Corp. or Nike Inc.

Tesla shares rose 13% on news of the Hertz order, pushing its market value past $1 trillion. About two-thirds of Musk’s net worth is tied directly to shares and options in the electric-car company, of which he is co-founder and chief executive officer.

Musk is increasingly pulling away from his fellow mega-billionaires when it comes to the size of his fortune. Amazon.com Inc.’s Jeff Bezos ranks second with $192.6 billion, according to the Bloomberg index.

Musk’s extraordinary jump in wealth comes as Democratic lawmakers, with President Joe Biden’s support, draw up a plan to tax unrealised gains of the very richest Americans. Senate Finance Committee Chair Ron Wyden, an Oregon Democrat, is laying out the so-called billionaires’ income tax, which would be aimed at those with $1 billion in assets, or three consecutive years of $100 million or more in income.

The stock-based nature of Musk’s fortune has made it possible for him to gain billions of dollars in paper wealth and become the world’s richest person while having few liquid assets. He accepts no salary from Tesla and part of his stake is pledged as collateral for personal loans, according to company filings. He told a federal jury in 2019 that despite his multibillionaire status, he didn’t have much cash. Last year he announced on Twitter he planned to sell his homes and “almost all” his physical possessions.

Even before the Hertz deal, Tesla shares have climbed in recent weeks. The auto maker’s stock price is up 45% this year, more than double the gain of the S&P 500 Index, as investors continue to reward green technologies.

A surge in Tesla stock isn’t the only source of wealth gains for Musk. The seventh tranche of Musk’s massive 2018 stock option package vested in the third quarter, according to a regulatory filing Monday, adding about $8 billion to his net worth.

© 2021 Bloomberg

VIDEOS

COMMENTS   13

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

Gosh, imagine if he stayed in SA. Would he have made such a fortune? I wonder.

Never-what a guy-worth 3,5 TRILLION RAND and ex South African!!

Wealthiest African American …

Not a chance. No BEE and greasing of palms needed in his country.

Just short of SA’s GDP for the last year. According to Bloomberg, Elon Musk is now worth $289 billion. Last year, due to Covid, South Africa had a GDP of $302 billion.

Speaks volumes.

At the Allan Gray investment summit in 2019,all the “experts” were passionately talking about tesla is doomed to fail.
Where are they now?

Tesla operates differently;
Almost $0.00 marketing budget
Zero spend on retail space
Technology superior products
Etc

Glad I didn’t listen to the “experts”

And what about Michael Burry who’s has shorted Tesla, I think he must be sweating bullets right now.

Nice to see the US government working towards taxing these billionaires unrealized gains. Tax the hell out of them I say, so that us lower and middle class citizens can pay less tax and enjoy the benefits!

Just between these 10 billionaires noted in this article they have a net worth of $1’4 trillion just sitting there realizing more and more gains every year. It’s time to tap into that wealth to better human kind, and the majority of the people on that list would totally agree!

Come come Tyran ,: you sound like the EFF ,: Steal from the wealth producers : Earn your own fortune or shush up !!

Come come edalsg pay attention! These billionaires have more money than they can spend in ten life times. And most of them, especially Warren Buffet, are all for being taxed more, they have no issues with it, so if they have no issues with sharing there wealth maybe you should shush up boy!

Every single employee working for these billionaire’s is better off because of them. The large number of Tesla millionaire’s who hold Tesla shares are rich because of Musk and his ilk.

Just because someone else is more productive than you are, does not give you the right to steal from them.

What a miserable approach to life. Go on holiday to North Korea and enjoy some of the socialist hospitality.

If they taxed billionaires more than they tax everyone else do you really think these billionaires would starve, do you really think they would end up in the homeless cue down at the local soup kitchen? Wake up man, most of these billionaires have absolutely no issues with being taxed more, they are all for it! In fact Warren Buffett started this whole movement years ago and it’s a great idea! Pay attention Bacchus!

If Tesla was a local company, we could have got the pension funds to invest, and allow people the opportunity to retire with dignity.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: