Elon Musk added $33.5 billion to his net worth on Thursday as Tesla Inc. shares posted their biggest gain in more than a decade, extending the world’s richest man’s lead atop the Bloomberg Billionaires Index.
Shares ended the day up 22% and turned positive for the year after the automaker reported its largest quarterly profit since the summer of 2023.
Musk forecast as much as 30% growth in vehicle sales next year on a webcast following the release and announced that the Cybertruck generated a quarterly profit for the first time.
The surge in Tesla’s stock price reflects a significant shift in investor sentiment, driven by strong financial performance and ambitious growth projections.
The company’s third-quarter earnings report, released on October 24, showcased its largest quarterly profit since mid-2023, rekindling confidence among shareholders after several lackluster quarters. While the report revealed mixed results, the key takeaway was the profit announcement, which signaled a recovery for the electric vehicle leader.
Musk’s optimistic remarks during the earnings call added to the excitement. He projected that Tesla could achieve a 20% to 30% increase in vehicle sales in the coming year, reinforcing a positive outlook on the company’s future. Investors were particularly pleased with the announcement that the long-awaited Cybertruck has finally turned a profit, highlighting Tesla’s ability to innovate and overcome production challenges.
What Elon Musk said
“I predict that Tesla will become the most valuable company in the world, probably by a large margin,” Musk asserted, stirring anticipation for the brand’s future endeavors.
- The company’s strategic focus on product development and market expansion positions it favorably in the competitive landscape of electric vehicles.
- Looking ahead, Musk unveiled ambitious plans for Tesla, notably the anticipated launch of “Cybercab” robotaxis, expected to debut by 2026. While regulatory challenges lie ahead, Musk remains optimistic that Tesla will spearhead advancements in the autonomous vehicle sector.
However, concerns persist regarding the delayed production of the Tesla Roadster, an upgraded version of the original sports car, initially announced in 2017. Musk indicated that production is nearing completion and hinted at a “spectacular” launch.
What to know
This financial gain has solidified Musk’s position, placing him $61 billion ahead of Jeff Bezos, who was formerly the richest individual globally, according to the Bloomberg Billionaire Index. Approximately 75% of Musk’s wealth is derived from his Tesla shares and options.
- In addition to Tesla, Musk maintains a significant presence in the private space sector through SpaceX, the social media platform X (formerly Twitter), and the artificial intelligence firm xAI.
- Recently, Musk has also become more vocal about his political views, particularly his support for former President Donald Trump.
As the elections approach, Musk has actively campaigned alongside Trump and contributed $75 million to a super PAC focused on boosting Republican voter turnout. He has expressed intentions to advocate for a more streamlined federal approval process for autonomous vehicles if Trump were to regain office, with Trump suggesting a potential role for Musk in reducing bureaucratic obstacles.
