Elon Musk has now become the third-richest person in the world.
Elon Musk passed Facebook Inc. co-founder Mark Zuckerberg Monday as shares of Tesla Inc. continued their unrelenting rally after undergoing a forward stock split. Musk is now worth $115.4 billion compared with $110.8 billion what Zuckerberg possesses, according to the Bloomberg Billionaires Index.
Tesla shares rallied as it started a trading post a 5-for-1 split. The stock shot up 7.7% by midday to trade above the pre-split record high of $2,238.75 ($447.75 post-split), which it had hit on August 27. The lower price did not change the trajectory of the parabolic uptrend.
Tesla, a favorite among amateur investors on online trading firm Robinhood Financial, has been one of the largest beneficiaries of the boom in retail investing during pandemic lockdowns. At one point last month, almost 40,000 Robinhood accounts added Tesla shares during a single four-hour span. And the trend isn’t limited to the US: South Korean retail investors have piled into Tesla this year and hold about a 1% stake in the American automaker.
Tesla’s $464 billion market value now exceeds that of retail behemoth Walmart Inc, the largest company in the US by revenue.
Last week, Elon Musk joined Mark Zuckerberg, Jeff Bezos, and Microsoft Corp. co-founder Bill Gates in the very rare billionaire club as his tech stocks rose to new feat.
Tesla’s shares have seen a meteoric rise so far this year, with stocks jumping more than 420 percent since the start of the year. Tesla shares rose to a record of $2,290 last week. The company went public at $17 a share in 2010 and has turned many retail investors into millionaires. The shares have gained more than 50 percent since the electric-vehicle company unveiled plans for the stock split on August 11.