Now World’s Second Richest Person Is Elon Musk

Rapid Escalation in Stock Market Shares of Tesla Increased Musk's Personal Net Worth

Rapid Escalation in Stock Market Shares of Tesla Increased Musk's Personal Net Worth

The Billionaire CEO of Tesla Elon musk has now been recognized as the second richest person in the world and has replaced the founder of Microsoft, Bill Gates, after a dramatic rise in his personal assets. The net worth of Elon Musk surged by $7.2 billion to $128 billion after the shares of his automobile corporation Tesla escalated.

Elon Musk net value increased by Tesla and SpaceX

According to the Bloomberg Billionaires Index, the current top position for the world’s richest man is held up by Jeff Bezos, the founder, and CEO of Amazon. The sudden shoot in the shares of Tesla was observed after the firm was added to the S&P 500, which is an index of the stock market that measures the performance of the shares of the top 500 firms that have been listed on stock exchanges in the US.

This has triggered a massive surge in the market value of the automobile company, more than $500 billion that in turn has acted as a boost towards Elon Musk’s business holdings and made him the second richest man in the world.

Tesla is already one of the most valuable automobile business firms globally, despite only developing and producing vehicles as compared to their rival companies like General Motors, Volkswagen, and Toyota.

During the speech given by Elon Musk after being named as the second richest person worldwide on Tuesday in Germany, He said that it is possible for Tesla to expand its business in Europe as it makes sense, by entering the European mass marketing segment through the development of a small car which is currently a requirement by the general population of the region.

In the United States, the vehicles used by the general public tend to be usually bigger in size due to their personalized taste, but in Europe, the cars that are usually in trend are small and compact in size.

Tesla’s stock shares increased worth

After several years of suffering from immense losses, Tesla is now experiencing profits consecutively for the last five quarters, as the number of sales for Tesla performed exceptionally well, even during the coronavirus pandemic during which nearly all business firms suffered from financial disturbances, which profited Elon Musk and made him the second richest person worldwide.

Tesla, a California-based automobile firm, has become a new addition to the S&P 500, that has sky rocketed its market value to $500 billion in a short amount of time and has consequently made Elon Musk the second richest person globally.

This news has excited the investors in the tech firm as the entrance into S&P 500 means that the previously invested funds that are tracking the index will now by design hold its shares and will have benefited from the gains in its stock prices.

Bill Gates and Jeff Bezos

The co-founder of the tech firm Microsoft, Bill Gates, was the second richest person until Elon Musk knocked him down due to the sudden rise in his automobile firm’s shares. In 2017, Bill Gates was known as the top rickets man across the world, but was later removed from the position as Jeff Bezos’s net worth suddenly escalated due to Amazon.

The total worth of Bill Gates is equal to $127.7 billion, but would have been much higher if he had not donated millions of dollars to multiple charities in the past years and would have still been the world’s second richest person.

The estimated net value of Jeff Bezos, who is currently the top billionaire in the world, is $182 billion. Mr. Bezos’s worth also experienced a rise in personal assets during the coronavirus pandemic as the demand through Amazon service provider was also increased.

Usually, Elon Musk, who is the second richest man in the world 2020, removes any controversial news before it spread and causes loss in his multiple businesses, but last week he rather had an eventful few days.

In the past week, he tweeted that he is suffering from minor symptoms of COVIS-19, as he has a moderate severity of the cold. The tweet was posted a day before four astronauts were launched to the International Space Station in a space rocket constructed by Elon Musk’s tech firm SpaceX.

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