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Tesla Hits New Milestone as Its Market Cap Jumps Above $500B

UTC by Ibukun Ogundare · 3 min read
Tesla Hits New Milestone as Its Market Cap Jumps Above $500B
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As Tesla records continuously increase, the net worth of the company’s CEO has been rising as well.

Tesla Inc (NASDAQ: TSLA) records a new milestone as the electric vehicle (EV) company’s market cap crosses $500 billion for the first time. On the same day, TSLA jumped 6.43% and trading closed at $555.38.

On the 24th of June, Tesla’s market capitalization exceeded $500 billion for the first time. At press time, however, data on MarketWatch showed that the company now stands at a $494.66 billion market valuation. 

Tesla Market Cap Is Up amid the Pandemic

Despite the negative impact of the coronavirus pandemic on businesses, Tesla has been recording gains for the past twelve months. The automaker’s stock has climbed 744.25% over the past year and 563.81% since 2020 began. In addition, TSLA has pulled in gains of 37.25% in the last three months. The company also surged 30.78% over the past months and 25.76% in the last five days.

Currently, Tesla is up 1.28% to $562.50 in after-hours trading. 

Tesla’s recent and steady gains can be tied to many factors. According to MarketInsider, the most recent push in TSLA is Wedbush analyst Dan Ives’ latest bullish price target. On the 23rd of November, the analyst raised his price target for Tesla to $1,000. Ives noted that the EV company had maintained a “sustained path to profitability,” which has bolstered the demand for electric vehicles. 

In addition, Wedbush is expecting global demand for EV to triple to 10% by 2025, and “disproportionately benefit the clear EV category leader.” 

Furthermore, Tesla’s stock also increased last week in reaction to the news that the company will be included in the S&P 500 (INDEXSP: .INX) in December. After Dow Jones (INDEXDJX: .DJI) announcement on the 16th of November, TSLA surged over 13%,

Analysts remain confident that TSLA is poised to further increase before the end of the year. 

Tesla’s Surging Stock Boosts Elon Musk’s Net Worth

As Tesla records continuously increase, the net worth of the company’s CEO has also been rising. Tesla CEO Elon Musk has surpassed Bill Gates to become the world’s second-richest person. According to the Bloomberg Billionaires Index, Musk hit the new milestone at $128 billion total net worth on the 23rd of November before Tesla climbed $500 billion market cap.

However, Musk’s net worth has increased since then and now stands at $136 billion on the Bloomberg Billionaires Index. Becoming the world’s second-wealthiest person, Musk’s wealth exceeded Microsoft Corporation (NASDAQ: MSFT) co-founder Bill Gates’s net worth. Gates’s current net wroth is $129 billion.

Before now, Elon Musk was ranked world’s 35h richest person on Bloomberg Billionaire Index. To reach the new milestone, Musk had added $108 billion to his net worth in 2020. 

Ahead of Musk is Inc (NASDAQ: AMZN) CEO Jeff Bezos as the world’s richest person. In total, Bezos’s net worth stands at $183 billion. Since the beginning of 2020, Jeff Bezos has added $68.1 billion to his net worth. 

As Tesla reaches new milestones this year, other EV companies such as Nio Inc (NYSE: NIO), Nikola Corporation (NASDAQ: NKLA), and Lordstown Motors Corp (NASDAQ: RIDE) have also been surging. 

Nio has climbed nearly 2,247% in the last twelve months. MarketWatch revealed that the automaker jumped by 1,231.09% in 2020 and added almost 200% over the past three months. Recently, the company unveiled its plans to launch new sedan models. 

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