Elon Musk’s financial fortunes are witnessing a dramatic turnaround, rebounding from a recent slump to reach levels not seen in nearly a year.
According to the Bloomberg Billionaires Index, the net worth of the world’s third-richest individual has surged by $37.3 billion in just the past five days.
This uptick marks Musk’s most substantial weekly gain since March 2022, coinciding with his high-profile bid to acquire Twitter Inc. for a staggering $44 billion, one of the largest leveraged buyout deals in history.
Elon Musk’s recent surge in wealth owes much to developments in China, where reports of progress towards approval for Tesla’s Full Self-Driving technology sparked a notable rise in the company’s shares. As Tesla’s second-largest market, China’s potential approval carries significant weight.
Musk’s financial fortunes, closely tethered to his substantial 20.5% stake in Tesla, have exhibited notable volatility in recent years. Despite the recent upswing, Bloomberg data reveals a $27.5 billion decline in Musk’s personal wealth since the year’s outset, attributed to Tesla’s fluctuating stock performance.
Tesla’s shares experienced turbulence earlier this year, initially declining due to below-par Q1 vehicle deliveries and reports of shelved plans for a $25,000 electric vehicle. However, a subsequent rally followed Musk’s commitment to expedite the development of more affordable models during the company’s earnings call.
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Monday’s trading saw a notable 12% surge in Tesla’s shares, fueled by Musk’s unexpected visit to China, lauded by Wedbush analyst Dan Ives as a strategic success. Nonetheless, Tesla’s stock remains down by almost 22% since the beginning of the year.
Comparatively, Musk’s wealth has diminished from its 2021 peak, where he held the top position on the billionaire’s index with an estimated fortune of $340 billion. Presently, Musk trails behind LVMH chief Bernard Arnault and Amazon founder Jeff Bezos, with a current estimated net worth of $202 billion.
Musk’s recent challenges include Tesla’s brief loss of its status as the world’s foremost electric vehicle producer to Chinese newcomer BYD, alongside significant workforce layoffs and a headline-making recall of nearly 4,000 Cybertrucks. Additionally, the company reported reduced profits in its latest earnings report amidst fierce competition in the electric vehicle market.
