Topline
Tesla CEO Elon Musk reclaimed his throne as the richest man on earth Thursday, wrestling the title away from LVMH chairman Bernard Arnault as shares of Musk’s electric vehicle giant surged to their highest level this year.
Elon Musk, right, is significantly richer now than he was at the start of 2023.
Key Facts
Tesla stock rallied 3% to as high as $233 in Thursday trading, on pace for its 10th straight day of gains.
Musk’s firm is on pace for its highest closing share price since October 6, 2022.
After cratering to a two-year low in early January, Tesla shares are up 109%, the third-largest return of any company in the S&P 500, which is up 12% this year.
That rally has propelled Musk to once again become the richest person on the planet, according to Forbes’ calculations, pegging Musk’s net worth to be $217.8 billion, $1.8 billion bigger than Arnault’s by just after 1 p.m. ET.
On Wednesday, Musk briefly topped Arnault for the first time since December, though he slid below Arnault again by market close.
Contra
Despite the sustained rally, shares of Tesla remain 44% below their November 2021 peak of $410, far underperforming the S&P’s 6% loss during the period.
Key Background
After surging during the pandemic, Tesla stock faltered dramatically last year as investors soured on the company’s promises of near limitless growth and Musk’s affair with Twitter, the social media platform he controversially bought last year for $44 billion, pulling away the billionaire’s time and financial resources from Tesla. Wall Street began to regain faith in Tesla after the firm reported record quarterly revenue and earnings in January, setting forth a rally that gradually gained steam as Musk found a replacement as Twitter CEO and played nice with lawmakers in the U.S., China and beyond.
Tangent
Tesla, which accounts for a majority of Musk’s fortune, may be booming, but Twitter is amidst a far gloomier stretch as Musk’s efforts to transform the company into the most valuable company on earth. The New York Times reported Monday Twitter’s advertising revenues were down 59% this April compared to the year prior, while Fidelity said last week it values Twitter at about $15 billion, about a third of the sticker price Musk paid last year.
Further Reading
Elon Musk Briefly Becomes World’s Richest Person Again (Forbes)
Tesla Stock Hits 4-Month High As Elon Musk’s Net Worth Soars (Forbes)
Source: https://www.forbes.com/sites/dereksaul/2023/06/08/elon-musk-is-worlds-richest-person-again-as-tesla-stock-soars-to-8-month-high/