Elon Musk fortune jumps $15 billion, set to become world’s third-richest person

Tesla, whose stock closed at $408.09, surged about 14 percent on November 17, raising Musk’s net worth to $117.5 billion, according to the Bloomberg Billionaires Index.

Avatar Written by November 17, 2020 15:37

New Delhi: Marsman Elon Musk is on his way to become the third-richest person in the world after jumping over Mark Zuckerberg. Musk’s rocket company launched four astronauts into space and on Monday his electric carmaker Tesla Inc. was named for inclusion in the S&P 500 which resulted in a sudden increase of $15 billion in his net worth.

Tesla, whose stock closed at $408.09, surged about 14 percent on November 17, raising Musk’s net worth to $117.5 billion, according to the Bloomberg Billionaires Index.

Tesla will enter the S&P 500 on Dec. 21 following months of speculation, and one temporary setback, after the stock failed to make the cut during the index’s quarterly rebalancing in early September. Tesla would be the biggest new entrant in the group’s history.

Tesla shares have soared 387.8 percent this year as the company is finally making money on a consistent basis after years of losses and continues to hit milestones for deliveries of its vehicles. Tesla earned $331 million in the third quarter on revenue of $8.77 billion.

SpaceX CEO Elon Musk has said there's "70 percent chance that he will go to Mars", despite a "good chance" of him not surviving either on his way or after landing, the media reported.

Tesla’s inclusion in the widely followed stock market index means investment funds indexed to the S&P 500 will have to sell about $51 billion worth of shares of companies already in the S&P 500 and use that money to buy shares of Tesla, so that their portfolios correctly reflect the index, according to S&P Dow Jones Indices. Tesla will account for about 1 percent of the index.

Musk’s company will be placed alongside other valuable firms like Apple, Amazon, and Berkshire Hathaway. S&P Global did not say which firm Tesla would replace, saying that it would make mention of in a separate release.

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