People & Money

Elon Musk to Become World’s Third Richest Man as Tesla Shares Surge

The chief executive of electric car brand Tesla, Elon Musk, is on course to displace Facebook’s Mark Zuckerberg as the third most affluent person, following a 13% leap in his company shares in reaction to Tesla’s selection for a place in the S&P 500 index of top United States firms.

Musk’s wealth is said to be in the neighbourhood of $117.5 billion, drawing strength from an approximately 500% rise in Tesla’s share value since the year began.

The development puts 49-year old Musk in the third position on the list of the richest people ahead of the Facebook founder, who is 36.

Musk is currently fourth on the ladder with $102 billion, according to Bloomberg Billionaires Index, which has not factored in the 12% increase that occurred during prolonged trading after the curtains were drawn on Monday trade session.

Also Read: Younger Workers Fleeing Oil Industry, Some May Work For Elon Musk

Musk holds 20% of Tesla’s shares and established Space X, a rocket company. He has seen a $90 billion addition to his wealth this year.

A further upward drift in the shares of the automobile manufacturer puts him in a good spot for a bonus deal that might earn him an unprecedented $55.8 billion.

But he has to grow Tesla to a $650 billion company by 2028 to reap the maximum payout. It is valued at a little under $400 billion, having expanded from $54.6 billion when the scheme was created in 2018.

Also Read: 2020 Elections: Who Will the 10 Richest Americans Support?

Amazon’s Jeff Bezos with $184 billion and Bill Gates, Microsoft’s principal founder with $129 billion are the only two people in the world richer than Musk. $50 billion of Gates’ wealth has gone to philanthropic causes for poverty alleviation and the fight against diseases.

Shares in Tesla rose from $409 to $460 in aftermarket trading on Monday on the heels of reports of its entry into the S&P 500, timed to take place on 21st December.

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