Tesla CEO Elon Musk is now the world’s fifth richest person

By B. O’Hare

Tesla’s recent success on Wall Street means CEO Elon Musk’s net worth has quite simply skyrocketed. The South African-born entrepreneur is now worth around three times as much as he was this time last year, largely thanks to his hefty stake in Tesla as opposed to his involvement in the likes of SpaceX and the Boring Company – which remain money pits for now.

Musk’s 20.8% share in Tesla means when the EV firm soars in value so does he, and vice versa when it comes to the declines. Tesla’s recent surge in value to upwards of $1,600 a share means Musk himself is now worth approximately $73 billion. This huge increase in value has largely been put down to a number of key factors. Firstly, the Model Y is ahead of schedule – despite COVID-19. Originally slated for a late 2020 release, first deliveries of what many predict to be a future best-seller actually took place in March. Secondly, apart from the Model Y there’s a huge demand for Tesla’s vehicles in general. Whilst many manufacturers where left stumped by the lockdown, Tesla’s fluid online system meant over 90,000 vehicles could be sold in Q2 of 2020 alone – during the worst period of COVID-19 so far.

Factors like the above led to a rapid increase from $361 a share in early March to around $1,600 today. However, many feel the stock is overvalued. Musk himself even tweeted Tesla’s share price was overrated at around $700 a share back in May. Whilst many financial experts are confident in the future of Tesla going forward (largely thanks to the Y and Semi) the majority agree that Tesla is overvalued. How overvalued? Well Forbes say by around 47% at current market rates. Morgan Stanley reckon it’s overvalued by over 100%. Hence it’s very difficult to tell whether Tesla is a good buy or not currently, but either way there’s no denying the company is moving in a very positive direction, regardless of the economic consequences of COVID-19 it appears. Do you have shares in Tesla? How do you feel about the future of the firm? Feel free to us know your thoughts in the replies section below.