Elon Musk has turn into the wealthiest particular person on the planet, surpassing Amazon CEO Jeff Bezos, because of the continued rise in Tesla’s inventory value. Musk is now price round $188 billion, in accordance with Bloomberg’s Billionaires Index.
“How unusual,” Musk tweeted Thursday. “Properly, again to work …”
Musk eclipsing Bezos’ personal extravagant private wealth of round $187 billion marks the newest improvement in a years-long rivalry between the 2 tech magnates — one that usually facilities across the accomplishments of their respective companies.
Bezos was reportedly so envious of Musk’s success in securing a $1.3 billion incentive package for Tesla’s Gigafactory in Nevada that it served because the genesis for Amazon’s beauty pageant-style search for its second headquarters. Bezos has a spaceflight firm in Blue Origin very like Musk does with SpaceX. The 2 males have traded barbs about their rockets, and even fought over hallowed NASA real estate. (SpaceX gained that struggle, and is the one of the 2 firms to efficiently attain orbit.)
Musk only just passed Bill Gates in November to turn into the second-richest particular person on the planet. The Tesla CEO noticed his private wealth skyrocket in 2020 to the tune of greater than $150 billion, largely as a result of Musk owns a lot of Tesla inventory — about 20 p.c of the corporate, in truth. And Tesla’s inventory has grown extremely worthwhile during the last 12 months or so, too, as Musk pulled the corporate out of so-called “manufacturing hell” and dramatically elevated gross sales of its electrical autos, because of the extra inexpensive Mannequin 3 sedan and Mannequin Y SUV. That coincided with an incredible rise of retail investors who more willing to fully buy into Tesla’s story than many on Wall Road as soon as had been.
The billionaire CEO’s inventory stash continues to develop, too, particularly after he signed a serious 10-year compensation package with the corporate in 2018 that additional tied his earnings to Tesla’s inventory value and income objectives. He’s awarded a raft of firm inventory choices each time a brand new milestone is hit; the primary tranche, which he acquired earlier this 12 months, was worth some $800 million.
Like most billionaires, Musk has solely seen his total wealth improve throughout the coronavirus pandemic. However not like that peer group, Musk claimed in courtroom to be “cash poor” and “financially illiquid” in 2019, and mentioned final 12 months that he would promote “almost all physical possessions,” together with his mansions. He takes loans in opposition to the inventory that makes him so rich and plows that cash again into his firms, like when he dumped around $100 million into The Boring Company in 2018. Musk has a protracted historical past of utilizing his personal private wealth to fund new endeavors, too, as he funded Tesla and SpaceX after changing into a millionaire operating Zip2 and PayPal.
Musk could now be the richest man on Earth by the requirements of money-focused retailers like Bloomberg and Forbes, although they have a tendency to deal with calculating knowable belongings. Nevertheless, authoritarian leaders like Vladimir Putin and Mohammed Bin Salman are each extraordinarily personally rich in ways that are harder to calculate, and now have unchallengeable entry to the huge wealth of their nations.