Elon Musk Was the First Person To Have a Net Worth of $400 Billion: What Could It Mean for Tesla Stock?
Written by
Marc Guberti
Edited by
Jenna Klaverweiden
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Elon Musk’s business ventures have turned him into the wealthiest person on the planet. He was also the first person to reach a net worth of $400 billion, though his net worth has since fallen to about $342 billion, per the Forbes Billionaires List.
Although Musk has many companies, none of them have impacted his wealth more than Tesla. The electric vehicle (EV) maker is tapping into autonomous vehicles and artificial intelligence (AI) to achieve long-term revenue growth, and these catalysts are part of the reason Tesla is worth approximately $1 trillion.
Read on for more details about how Musk and his wealth could affect Tesla stock going forward.
Musk Is Heavily Invested in Tesla
Although Musk has many ventures, Tesla is the most significant portion of his wealth. This bodes well for Tesla investors since Musk has to maintain Tesla’s value to maintain his wealth and fund other ventures. If Tesla crashed, Musk’s fortune would take a big dip, and that could hinder his ability to start additional ventures and fund his existing ones.
Even though it may look like Musk isn’t fully focused on Tesla from time to time, especially with his recent entrance into politics, it is a vital piece of his wealth.Â
Musk, like any billionaire, likely strives to increase his wealth to the best of his ability, and most people share that goal. Other ventures could serve him well, but Tesla is the foundation. Cybercabs and Optimus represent two of Tesla’s moonshot opportunities. Musk made EVs popular, and with his leadership, he could also make cybercabs and humanoid robots mainstream. That could make for plenty of happy shareholders.
Musk Still Has Other Companies
Musk still has a bunch of other companies, such as SpaceX, xAI, X, Neuralink and The Boring Company, that contribute to his wealth as well. Each of these companies will grab some of Musk’s attention, and he may turn to smaller ventures for outsize gains. For instance, it’s likely easier to turn a $10 billion company into a $100 billion company than it is to turn Tesla from a $1 trillion company to a $10 trillion company.
Some investors have praised Musk’s ability to generate meaningful growth for Tesla while focusing on other ventures. However, other investors may wish that he exclusively focused on Tesla.Â
Musk’s ventures, however, could also be great news for Tesla, as they could possibly give him more assets that he could use to drive more innovation and demand for Tesla, potentially resulting in a higher stock price.
Musk Remains the Pulse of Tesla Stock
Few stocks can command valuations as high as Tesla’s, but few companies have leaders like Musk. The tech billionaire remains the linchpin that decides Tesla’s fate. His entrance into politics, for example, caused the stock a lot of volatility this year. It’s down over 15% for the year as of July 17.
Some investors still remain bullish on Tesla, while others are more cautious after its significant drop this year. Although short-term noise can drive plenty of price movement, many investors remain committed due to Musk’s leadership and the company’s exciting opportunities.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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