Elon Musk Set To Overtake Mark Zuckerberg As Third-Richest Person

Elon Musk Set to Overtake Mark Zuckerberg as Third-Richest Person

, Elon Musk Set To Overtake Mark Zuckerberg As Third-Richest Person, Relay VibesElon Musk, the independent CEO of the electric car firm, Tesla, is likely to pass Facebook’s Mark Zuckerberg to be the world’s 3rd-richest after Tesla’s shares spiked by 13% since its choice to be part of the S&P 500 index of leading US companies.

The latest boost in the Tesla share price, which had already gone up by, close to, 500% so far this year, is estimated to have increased Musk’s wealth by about $15bn (£11.4bn) to around $117.5bn.

That puts Musk, at 49, 3rd on the chart of the world’s richest ahead of Zuckerberg, 36, with $106bn as repoted by the Bloomberg Billionaires Index.

The index reveals Musk in 4th position with $102bn but has not yet added the 12% increase which happened in extended trading when the market closed on Monday.

Musk owns 20% of Tesla’s shares. He established rocket company SpaceX, which has witnessed a surge of about $90bn in his wealth so far this year.

His fortune could go higher as Tesla’s share price grows which puts Musk on target for a bonus deal which may pay him a record $55.8bn.

So as to activate the maximum payout, Musk has to grow Tesla into a $650bn firm by 2028.

It’s worth just below $400bn, all the way from $54.6bn when the scheme was established in 2018.

The only people in the world wealthier than Musk are founder of Amazon ,Jeff Bezos, about $184bn, and Microsoft’s founder, Bill Gates, $129bn.

Gates has given out not less than $50bn to help tackle diseases and fight poverty.

Musk has  has pledged to the same act of Giving, the philanthropic initiative which was started by Gates and investor Warren Buffett to encourage the world’s richest people to commit themselves to give away not less than half their fortune to charity.

But, the Musk Foundation, a charity he was established with his brother back in 2002, has given away less than $100m according to regulatory filings.

Tesla’s share price flew from $409 to $460 in aftermarket trading on Monday after news of S&P 500 taking him in, this will happen on 21 December.

There is actually a significance in his inclusion because passive funds that track the S&P 500 will buy shares in the company.

Tesla ought to have joined the index at the last reshuffle in September but didn’t happen due to concerns about the stock’s volatility.

Now that a stock market value tips towards $400bn, Tesla will be part the most valuable companies that has ever been added to the S&P 500 index.

Tesla is currently the car company with the highest market value in the world as of now – above the likes of Toyota, Volkswagen and General Motors – despite the fact that it makes just a minute portion of the number of automobile.

Telsa has in plan to manufacture up to 500 thousand vehicles this year,which is still relatively low compared to the likes of Toyota’s annual output of around 10 million.

The week has actually been busy for Musk. On Monday, SpaceX launched 4 astronauts to the Int’l Space Station on its Falcon rocket and Dragon capsule, the first of a commercial agreement supplied to Nasa.

 

Credit: THE GUARDIAN

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