Electric car maker tesla’s co-founder and CEO Elon Musk surged ahead Amazon founder and CEO Jeff Bezos to become the wealthiest person in the world according to calculations done by Bloomberg.
Just a 6 per cent rise in the stock price of Tesla on Thursday propped up the personal wealth of Musk by a huge $10 billion which took his personal net worth to $191 billion. On the other hand, the modest rise of less than 2 per cent for Amazon stocks helped Bezo’s net worth to increase by $3 billion and putting his net worth $187 billion.
According to Bloomberg, the third richest person in the world by far is Bill Gates with a net worth of $132 billion.
According to Forbes’ calculations, prior to Thursday’s rise, Tesla shares had also gained value in Wednesday which had increased Musk’s net worth by $4.1 billion and his net worth to $165.4 billion.
But Forbes does not appear to be giving Musk credit for the value of options he received in 2020 to buy an additional 33.6 million shares of Tesla.
Apart from Tesla, Musk is also the primary shareholder and CEO of SpaceX. But because SpaceX is privately held, therefore there is much less fluctuation in the company’s valuation than Tesla
Through the entire of 2020, there was a $75 billion rise in Bezos’ stake in Amazon shares to $173.3 billion primarily because of the huge increase in sales of the company during the Covid-19 pandemic.
However compared to Musk, that rise was minimal. During the entire of 2020, there was an increase of $106 billion for the 170 million shares of Tesla that is already owned by Musk as Tesla’s shares rose by 743 per cent throughout the course of the year.
While the value of the stocks in the company that Musk owned previous increased by $14.2 billion throughout the year, a total value of $21.5 billion at year’s end was the value of the new options he received during the course of the year as part of his pay package.
In Late November, Musk surpassed Gates to become the second richest person in the world and with tesla shares increasing by about 45 per cent since then, Musk’s net worth has also been lifted by $53 billion just within the last couple months.
In the new year of 2021, the start for Tesla shares has been encouraging as they have increased by more than $90 a share, or 13 per cent so far this year which includes the gains made by the stocks on Thursday. That has lifted Musk’s Tesla holdings and options by about $21 billion this year.
In contrast, stocks of Amazon were slightly down for the year as of Thursday.
(Adapted from CNN.com)