The world’s richest man, Elon Musk, saw his net worth rise by $12 billion on Tuesday as Tesla shares continued to rise following the electric car maker’s impressive delivery announcement.
Tesla shares hit just under $229 before noon, contributing to a nearly 25% rise since the stock price dipped below $183 on June 24. Musk’s net worth is now $240.2 billion, according to the Forbes Billionaires Index, but his 12% stake in Tesla has risen to $160 billion from about $150 billion as of Monday’s close.
The week’s price rise has added about $30 billion to his shares. According to Tesla’s latest report, second-quarter deliveries were about 444,000 vehicles, down 4.
8% year-over-year but up 14.8% sequentially.
The figure easily beat analysts’ expectations of about 439,000 deliveries, boosting investor confidence and lifting the stock price. Tesla shares have seen significant volatility in the first half of 2024, dropping below $140 in April after peaking at more than $250 earlier in the year, but the company’s ability to beat expectations has been a key driver of his recent performance.
The stock price slumped earlier this year after Tesla reported a 48% increase in first-quarter profits and a 9% decline in sales while delivering 70,000 fewer vehicles than expected, marking the first negative quarterly delivery growth in four years.
Tesla’s vehicle deliveries this year have been affected by several factors, including supply chain issues and an arson attack at the company’s Berlin factory. Despite these challenges, Tesla’s recent performance suggests that the company could be on the upswing as it adapts and overcomes these obstacles.
The company also faces growing competition from Chinese automaker BYD, which sold 426,000 electric vehicles in the second quarter. Increasing competition in the electric vehicle market poses additional challenges for Tesla as it seeks to maintain its leadership position.
BYD’s strong sales figures attest to the competitive environment and growing global demand for electric vehicles. Elon Musk, co-founder of six companies including Tesla, SpaceX and tunnel-drilling startup The Boring Company, remains a prominent figure in the technology industry.
Although a Delaware judge earlier this year invalidated a 2018 agreement that gave Musk options for an additional 9% of Tesla stock, Musk’s influence and leadership continue to inspire investor confidence. In 2022, Musk bought Twitter for $44 billion and renamed it X.
However, Forbes estimates Musk’s stake in his compensation package. Tesla shareholders reiterated their support for Musk’s $56 billion compensation deal and approved his relocation to Texas.
