Elon Musk Fortune Soars Near $300 Billion on Tesla-Hertz Deal
26 Oct 2021 · 3rd Party Analysis
- Elon Musk’s net worth jumps to a record of $289bn after a $36bn gain in one day
- Tesla strikes a deal with rental-car company Hertz for 100,000 vehicles delivered by 2022
Elon Musk Now Worth a Staggering $289 Billion
The personal fortune of billionaire Elon Musk jumped to record levels on Monday. In other words, the chief executive of Tesla now boasts a staggering net worth of $289 billion after he added $36 billion yesterday. The cause for his massive enrichment in a day was a deal between Tesla and car rental company Hertz Global Holdings.
In more detail, Hertz has ordered 100,000 Tesla cars to be delivered in 2022. The move is expected to bring electric vehicles to the mainstream user as a way to reduce carbon emissions.
The deal immediately pushed Tesla’s share price to record levels above $1,000. Moreover, the EV maker finished the trading session up 12%, closing at an all-time high of $1,024 a share. As a result, the company crossed $1 trillion in market capitalization.“Strange that moved valuation,” said Mr. Musk on Twitter, referring to the Hertz deal and Tesla’s soaring value. “Tesla is very much a production ramp problem, not a demand problem,” he added in his tweet. Furthermore, he emphasized Tesla’s new valuation by tweeting “Wild $T1mes!”
Musk’s Soaring Wealth Makes Him More Valuable than Salesforce
Being the world’s richest person, Elon Musk is now more valuable than some of the most popular companies today. For example, Mr. Musk’s soaring wealth puts him above software giant Salesforce or vaccine maker Pfizer. Or even apparel company Nike, valued at $260bn.
Surpassing the valuations of large-cap companies is seemingly inevitable for Mr. Musk’s progress. His company Tesla, the first car company worth over $1 trillion, has disrupted the car industry as we know it.
Not only that, all major car manufacturers who have been in the business for years, have followed in Tesla’s footsteps. On that note, Tesla has opened the doors to mainstream adoption of electric cars. That said, Elon Musk’s wealth increase is due to the fact that he owns about 21% of Tesla.
Additionally, his other company, SpaceX, received a valuation of over $100 billion earlier this month. In it, Mr. Musk owns about 44% of the shares. SpaceX is still a private company, meaning, its shares are not publicly available.
Bitcoin Price Steady Near $63,000
Meanwhile, in cryptocurrency markets, the price of bitcoin, the biggest crypto, has retreated from its all-time high set last week. With that in mind, the orange coin today is hovering near $63,000, slightly higher on the day.
Economic News Today (EST time)
The consumer confidence report is scheduled to arrive from the US today at 10:00 am. Also, Australia’s inflation number for the third quarter will be released at 08:30 pm. Both reports could increase the volatility in the currency market, presenting trading opportunities for short-term traders.