By Seth Gellman
Source: Odd Andersen/AFP via Getty Images
Elon Musk officially surpassed Bill Gates on November 24th to become the second richest man in the world as Tesla’s value reached more than $500 billion. As President-Elect Joe Biden, a clean energy advocate, officially starts his transition, Tesla shares rose once again, a common pattern throughout the year. Tesla shares have risen more than six fold this year.
Musk’s net worth increased by more than $100 billion since the start of the year, with Musk and Gates both currently at $128 billion. Musks surged ahead of Gates for a few hours before going back down to a tie. Musk’s personal fortune is made mostly from his 20% stake in Tesla and 54% stake in his aerospace manufacturer, SpaceX.
In January, Musk was ranked 35th among other billionaires. He’s jumped 33 spots since then. There is still a $54 billion gap in between Musk and the world’s richest man, Amazon founder Jeff Bezos, but Tesla’s debut on the S&P 500 index in December will likely narrow that gap.
According to the Bloomberg index, the billionaires on the index have increased their wealth by 23% collectively, or $1.3 trillion, as workers struggle to find jobs and stay afloat during the pandemic. From 1989 to 2016, the wealth gap between America’s richest and poorest families has doubled, according to Pew Research Center.
Instead of getting a salary, Musk gets paid in Tesla stock rather than a traditional salary based on the carmaker’s performance, a decision that has paid off well for him. Musk makes about 2 million times more than the average American household.
Some analysts are predicting that Tesla’s stock will increase by even more than it already is because of the world’s shift away from carbon products. Some governments like the UK plan to ban cars with internal combustion engines to try to slow climate change.
Elon Musk has had an incredible year. Tesla’s shares have skyrocketed and SpaceX has sent astronauts to the International Space Station. After a record breaking year, all eyes will be on how Tesla performs at its S&P index Debut later in the month.
