Following the recent Tesla Inc. (NASDAQ:TSLA) stock rally, CEO Elon Musk has recovered almost all of the wealth he lost since his meeting with President Donald Trump in the run-up to the 2024 presidential election.
Elon Musk Is The World's Richest Person…Again
The billionaire, who was briefly overtaken by Oracle Corp (NYSE:ORCL) CEO Larry Ellison, has reclaimed the title again. The news was first reported by Business Insider on Monday. According to the Bloomberg Billionaires Index, Musk stands at the top with a $429 billion fortune, just a few billion shy of his January 1 figure of $431 billion.
The surge in value follows Tesla's stock rally and $1 billion share purchase made by Musk. Tesla stock currently sits at $419.25 in pre-market trading, according to Benzinga Pro data.
However, the stock price was down 45% YTD at its lowest this year in April, coinciding with Musk's net worth dropping to $290 billion, putting him well below the richest person mark.
Elon Musk’s Political Exploits
This came after Musk had expressed support for President Donald Trump's campaign last year and donated more than $250 million to the cause and later joined the administration, forming the DOGE or Department of Government Efficiency.
Musk later also had a falling out with Trump, threatening to withdraw his company, SpaceX, from NASA missions, as well as calling Trump out on his alleged ties to sex offender Jeffrey Epstein. Musk also shared plans to found a political party, but ultimately, exited DOGE and involvement with the government, a move that was hailed by investors.
Elon Musk's Trillion-Dollar Pay Package
The Tesla board of directors also recently unveiled a pay package for Musk, which could, if all the conditions and milestones it stipulates are met, make Musk the first trillionaire in history. Musk's pay package has been criticized by politicians like Sen. Bernie Sanders (I-Vt) as well as Pope Leo.
The pay package also stipulates that Tesla must reach a market capitalization of $8.5 trillion and includes conditions like 10 million active FSD subscriptions, among other things. Interestingly, Tesla recently revised the definition of the FSD technology amid its Robotaxi expansion in Austin.
Tesla's Stock Rebound Amid Dwindling Sales
The company's stock began surging after reports suggested that the EV giant would beat analyst delivery expectations by a sizeable margin, leading to a boost in investor confidence despite warnings from experts like Gerber Kawasaki co-founder Ross Gerber and Future Fund LLC's managing director Gary Black.
However, despite the surge in stock value, Tesla's dwindling sales still pose a challenge for the company. Recent data suggests that the company's market share in the U.S. dipped below 40% for the first time since October 2017. Tesla's poor sales have been attributed to Musk's close association with the Trump administration.
Tesla's European sales, too, have taken a hit, dropping 40.2% in the region, coinciding with Chinese rival BYD Co. Ltd.'s (OTC:BYDDY) (OTC:BYDDF) 225% surge in the European market.
Gigafactory Boost, Musk reiterates Tesla Commitment
Interestingly, Tesla's Gigafactory in Berlin has announced it will be ramping up production in Q3 and Q4, citing "positive signals" and increased sales in the region as well as other markets it serves.
What could also provide a boost is Musk's reiterated commitment to Tesla and his other ventures, which he highlighted in a recent post on the social media platform X as he gave a brief insight into his schedule and said he is focused on Tesla's artificial intelligence, autopilot and production activities, which could help boost investor confidence in the company again.
Tesla scores well on Momentum and Growth metrics, while offering satisfactory Quality, but poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!
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