Musk, already the world’s richest person, has now widened his lead over the second-richest individual by $50 billion.
Thursday saw Elon Musk’s net worth surge by $21 billion, propelled by Tesla’s stock soaring almost 19% following the company’s third-quarter earnings report exceeding predictions. This remarkable increase represented Tesla’s most significant one-day surge since March 2021, lifting its market capitalization by $117 billion.
The surge in stock prices during mid-morning trading, as highlighted by AFP, reflects the strong belief investors have in the company’s future growth prospects. Tesla’s profits saw a notable uptick of 17 percent from the corresponding period last year, reaching $2.2 billion, while revenue experienced an 8 percent increase, reaching $25.2 billion.
Musk Increases Lead On Billionaire’s List
Musk, who already holds the title of the wealthiest individual globally, has further extended his advantage over the second-richest person by $50 billion, primarily due to his significant ownership in Tesla. The impressive profits, showcasing Tesla’s most robust quarterly earnings in the past two years, underscore the firm’s capacity to generate strong sales amidst a growingly competitive electric vehicle (EV) sector.
Morgan Stanley’s Adam Jonas highlighted Tesla’s emphasis on profitability, noting that the company places great importance on growing its automotive sector in a sustainable manner. This observation was well-received by investors, who viewed Tesla’s ability to maintain strong performance in the face of obstacles such as inflation and supply chain disruptions in a positive light.
Moreover, the news of Tesla’s driverless car ambitions as unveiled by Musk during the recent quarterly earnings call has significantly fueled investor excitement. Musk disclosed the company’s ambitious goal of introducing fully autonomous, driverless ride-hailing services in California and Texas as early as next year. Notably, Tesla presently operates an application-based ride-hailing service in the San Francisco Bay Area, albeit with a safety driver in place.
Musk’s latest declaration underscores his ambition to eliminate safety drivers altogether, aiming to introduce these “paid rides” once regulatory requirements permit. This schedule expands upon his earlier remarks during Tesla’s recent Robotaxi conference, where he anticipated introducing “unaccompanied” self-driving Teslas by 2025.
Tesla’s ambitious strategies are in line with the company’s goal of cementing its dominance in the self-driving technology sector. Patrick O’Hare, a market analyst at Briefing.com, highlighted that the enthusiasm surrounding Tesla’s latest report and future prospects has significantly contributed to the recent surge in the stock price. With its advancements in electric vehicles and autonomous driving systems, Tesla’s latest financial results underscore its capability to sustain profitability and instill trust among investors.