On Wednesday, January 6th, the co-founder of Tesla, Elon Musk overtook Amazon’s Jeff Bezos’ to become world’s richest man.
The 49-year old business tycoon, became world’s richest man at exactly 10:15am in New York on Wednesday when his total net worth surged up to $186bn(£136bn). This made Elon Musk $1.5bn richer than Bezos who had held the world’s richest man tittle since 2017.
Musk’s sudden surge in total net worth comes as a big shock to his competitors and the world at large, because no one actually saw it coming.
Perhaps, because in 2020 Musk’s net worth was at $27bn, and was barely among the top 50 world’s richest people.
The tremendous surge in Elon Musk’s wealth in 12 months has become ‘the fastest rise to the top of money list in history’.
However, how Musk’s net worth increased quickly is still peculiar to some people, the explanation of the fast surge in his net worth lies in the simple principles of share price speculation and taking risks in business.
2709updates in this piece explains how Elon Musk’s took away Jeff Bezos’ position to become world’s richest man.
What led to the sudden increase of Elon Musk’s net worth?
Bloomberg reports that a 4.8℅ rise in Tesla’s share price pushed Musk into the top spot of the world’s richest man list.
As of 10:15am the business tycoon’s net worth had bounced up to $188.5bn(N71,856,200,000,0 00).
Replying to the status of his world’s richest man tittle, Musk said, “How Strange”, “Well back to work”
Reports have gathered that Tesla’s stock price increased by 4.9℅ on Wednesday, January 6th, which gave Musk the opportunity to trail Bezos by $3bn(N1,143,600,000).
One of the things that made Musk’s net worth increase was how Tesla’s stock price rose by 743% in 2020.
Reports say that (Tesla’s) share price had risen by more than sevenfold in 2020 as a result of the increase in the demand for electric cars and government’s new measures to extinguish internal combustion engines from earth.
The Guardian reports that, research by analysts say that Tesla’s share price was buoyed after Democratic victories in Georgia to take control of US Senate, this victories meant the US may include tax credits for electric vehicles and join the ‘green agenda’.
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In 2020, Elon Musk was only a brisk away from achieving his goal of manufacturing half a million electric cars, His annual sales rose by 36% after a final quarter that exceeded expectations of analysts despite the pandemic to deliver 499,550 cars in 2020.
Musk also owns a rocketship company called SpaceX. The company with a deal NASA, has already started transporting astronauts to international space Station.
SpaceX recently sent four astronauts to international space in a falcon rocket and Dragon capsule. The company is also set to launch 60 broadband internet satellites into the orbit.
Tesla’s share price may bring about a bonus deal for Musk, which will earn him a record deal of $58.8bn, and this will only increase Musk’s wealth further.
Although fears are rising that share prices may rise far above real values and that the Tesla’s share price will crash in a spectacular fashion.
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Congratulations to Elon Musk on becoming world’s richest man!. Feel free to leave your comments in the comment section below.