Elon Musk

 

Highlights

• Tesla and SpaceX entrepreneur was pushed into the top slot after Tesla’s share price

Mr Musk’s electric car company Tesla has surged in value this year, and hit a market value of $700bn

The pandemic has meant Amazon benefited from stronger demand for both its online store and cloud computing services

Bezos gave a 4% stake in the business to his ex-wife MacKenzie Scott after they split, which helped Mr Musk overtake him

Elon Musk has become the world’s richest person, as his net worth crossed $185bn (£136bn).

Top slot

The Tesla and SpaceX entrepreneur Elon Musk, was pushed into the top slot after Tesla’s share price increased on Thursday.

He takes the top spot from Amazon founder Jeff Bezos, who had held it since 2017.

Electric car

Mr Musk’s electric car company Tesla has surged in value this year, and hit a market value of $700bn (£516bn) for the first time on Wednesday.

That makes the car company worth more than Toyota, Volkswagen, Hyundai, GM and Ford combined.

The tycoon’s fortunes have been buoyed by politics in the US, where the Democrats will have control of the US Senate in the forthcoming session.

Fortune

Mr Bezos has also seen his fortunes rise over the past year. The coronavirus pandemic has meant Amazon benefited from stronger demand for both its online store and cloud computing services.

Stake

However, he gave a 4% stake in the business to his ex-wife MacKenzie Scott after they split, which helped Mr Musk overtake him.

In addition, the threat of regulation has meant Amazon’s stock has not risen as high as it might otherwise have done.

It is the fact that Tesla’s share price has increased more than seven-fold in the past year that has sent Elon Musk’s fortune rocketing past that of Jeff Bezos.

To believe the electric car-maker’s worth could rise so rapidly in just 12 months is the ultimate example of irrational exuberance.

It means that Musk will have to show within the next five years that Tesla can make more profits than just about the whole of the rest of the motor industry combined to justify the valuation.

 

NP/Fatimah/BBC News

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