Tesla’s stock soared over 10% in a single day, significantly boosting Elon Musk’s fortune and solidifying his position as the world’s richest person. According to the Bloomberg Billionaires Index, Musk’s net worth surged by $15.3 billion in just one trading session, bringing his total wealth to $241 billion.
Tesla Stock Soars, Musk’s Wealth Skyrockets
On July 2, Musk saw the largest increase in wealth worldwide, surpassing Jeff Bezos, who gained a comparatively modest $2.6 billion. The dramatic rise in Musk’s wealth was driven by a 10% increase in Tesla’s stock, which reached its six-month high on the same day.
Tesla announced it had delivered nearly 444,000 vehicles in Q2, which, while slightly lower than the previous year, marked a 15% growth compared to the prior quarter. This exceeded analysts’ predictions, who had expected 438,000 deliveries, easing concerns about declining demand for electric vehicles (EVs).
Analyst Reactions
Garrett Nelson, an analyst at CFRA Research, noted that the delivery numbers were better than expected and helped “alleviate concerns” about a possible downturn in EV demand. Wall Street had been worried that Tesla’s slower release of new models—especially compared to its competitors, particularly those from China—might impact the company’s market share. Other automakers have recently introduced lower-priced models, catering to the market’s price sensitivity amid rising interest rates, which have dampened EV demand.
Tesla’s Continued Success
Despite challenges in its vehicle division, Tesla’s stock price continues to rise. Last month, shareholders voted to reapprove Musk’s massive compensation package, showing their enduring confidence in his leadership. Robyn Denholm, Tesla’s Chairwoman, had previously remarked that the reapproval would “motivate Musk to stay focused on Tesla’s growth”.
On July 2, Musk commented on social media that the stock’s performance was minor compared to the potential growth from self-driving technology and Optimus, Tesla’s humanoid robot project. Musk believes that if these two areas are successfully commercialized, they could significantly increase Tesla’s market capitalization.
