Amidst increasing demand from investors to acquire Tesla shares, Elon Musk, the world’s second-richest billionaire, has seen his fortune climb the most this year. Incredibly, he has added $45 billion to his fortune since January.
Mr. Musk is closing up on the current wealthiest man in the world, Bernard Arnault ($187 billion), with a net worth of $182 billion.
The share of Tesla Motors, Inc. (NASDAQ: TSLA) is $201.29, a 65% increase from its January price of $165.
Stronger-than-expected profits in the fourth quarter and other occurrences that the market perceived as positive portents of future performance contributed to the uptick in Tesla’s and the market’s valuation.
Many people are betting on the stock since it seems to be performing well despite increased geopolitical unpredictability. The most favorable value trigger was the company’s fourth-quarter results, which were disclosed on January 25.
Financial update from Tesla: the electric vehicle maker posted non-GAAP (adjusted) profits per share of $1.19 on revenue of $24.32 billion, above the average analyst projection of $1.13 on $24.16 billion in sales. While the top and bottom line beats did provide fresh positive momentum for the stock, other factors also contributed to the prior month’s success.
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Investors have previously voiced concern that Musk’s outside commitments were keeping him from giving his full attention to Tesla. The possibility of Musk selling Tesla shares to fund Twitter’s losses was also a source of concern.
However, Musk calmed investors’ nerves on February 5 by saying Twitter was almost profitable. This helped reduce the likelihood of more Tesla stock sales. Tesla shares have increased by almost 6 percent since then. The Nasdaq Composite has dropped roughly 2% within the same time period.
However, other investors are still on the sidelines because they believe that the values of many growing companies are overstated due to the current interest rate environment. However, things seem to be cooling down on that front.
The 25-basis-point hike in interest rates implemented by the Federal Reserve at its meeting on February 1 was a relief after four 75-basis-point increases and one 50-basis-point increase. Although rate hikes are having the intended effect of keeping inflation in check, the Fed plans to keep raising interest rates forever.
You may recall that Elon Musk’s 2022 was so terrible that he set a new record for the most money ever lost by one individual. Since the end of 2021, Musk has lost almost $200 billion as a result of the dismal performance of Tesla stocks.
