Press "Enter" to skip to content

A record: Elon Musk gains $36.2 billion in a day on Tesla-Hertz blockbuster deal – Hindustan Times

The rise in Elon Musk’s personal wealth is among the biggest one-day gains in the history of the Bloomberg Billionaires Index, second only to Chinese tycoon Zhong Shanshan’s $32 billion surge last year on the day his bottled-water company, Nongfu Spring Co, went public.

An order placed by car rental company Hertz shook the markets on Monday, and led to one of the biggest single-day jumps in the wealth of an entrepreneur. That person is Elon Musk, who saw his personal fortune go up by $36.2 billion – or 2.71 lakh crore.

Hertz placed an order for 100,000 Tesla cars, which pushed up the company’s shares by as much as 14.9 per cent to $1,045.02, and took Musk’s 23 per cent stake Tesla to $289 billion. That stake includes options worth over $50 billion that have vested under Musk’s 2018 compensation package.

It’s among the biggest one-day gains in the history of the Bloomberg Billionaires Index, second only to Chinese tycoon Zhong Shanshan’s $32 billion surge last year on the day his bottled-water company, Nongfu Spring Co, went public.

About two-thirds of Musk’s net worth is tied directly to shares and options in the electric-car company, of which he is co-founder and chief executive officer.

Musk is increasingly pulling away from his fellow mega-billionaires when it comes to the size of his fortune. Amazon’s Jeff Bezos ranks second with $193 billion, according to the Bloomberg index.

In addition, Musk is a major shareholder and CEO of rocket maker SpaceX, a private company worth $100 billion as of an October secondary share sale, according to a CNBC report.

The spike in Tesla’s share price also helped the electric carmaker break into the trillion dollar club after Apple Inc, Amazon.com Inc, Microsoft Corp and Alphabet Inc.

Hertz said in its announcement that it will complete its purchases of the Tesla Model 3 small cars by the end of 2022. It also said it will establish its own electric vehicle charging network as it strives to produce the largest rental fleet of electric vehicles in North America.

SHARE THIS ARTICLE ON

Close Story