When Elon Musk Was World’s Richest Man

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Move over Jeff Bezos, you’ve been replaced as the world’s richest person by none other than the Tesla and SpaceX maverick Elon Musk. Elon Musk became the richest person in the world a few weeks ago after a sudden surge in Tesla share prices. Coming in at a whopping $185 billion net worth, Musk overtook Bezos, who was sitting at $184 billion net worth and has been the richest person in the world since 2017. What’s even more awe-inspiring is that Musk went into 2020 with a net worth of $27 billion and barely featured in the list of top 50 richest people in the world. Tesla has been doing exceptionally well since the pandemic took hold of the globe, and with the world’s shift towards green energy and sustainability, the company is poised to do even better. Let’s take a look at how Musk became the richest man in the world, and how Tesla’s performance looks for 2021. Spoiler alert—by January 12th, Musk slid to the world’s second richest after Tesla shares dipped, but an interesting saga awaits nonetheless.

Tales of Tesla

Elon Musk was a founder of Tesla 17 years ago, which has risen to success rather quickly over the last few years, with 2020 being its biggest year to date. The company was recently added to the S&P 500, and Musk owns 20% of Tesla’s shares. All eyes are on Tesla now to see whether the company will make its 2021 sales goals, estimated by an analyst at around 840,000 to 1 million vehicles sold.

In 2020, the company produced more than half a million vehicles and came just shy of their goal to deliver 500,000 vehicles, missing it by just 450. All things considered, this was an excellent achievement in the midst of a pandemic, as well as many economic downturns. Tesla is going for gold, as more factories are being approved and set up around the world to manufacture the company’s new models. With plans like these, it’s clear that Musk has big plans for the electric car company and that this may be just the start. In fact, US politician Nancy Pelosi seems to have bought into this as well, and has plunged $1 million worth of bets on Tesla stock when she bought 25 call options with a strike price of $500.

Tesla stock began 2021 the same way it ended 2020, with massive intra-day and closing highs. In fact, in January the company had a record longest winning run. Tesla shares have risen by an eye-watering 635% in the last year, as they welcome the new Model Y car. Within the first week of 2021, Tesla stocks had risen by 13% which is more than $90 per share. Between 16th November 2020 and 8th January 2021, Tesla stocks rose by an enormous 115.7%, from a closing price of $408.22 to $880.84. Some analysts are now wondering whether President Joe Biden’s new administration will impact Tesla’s stocks, based on his pro-green energy stance. However, it is too soon to tell, so it’s a good idea for traders who are interested in Tesla shares to keep up to date with the latest news and market developments to see how these factors can influence Tesla shares. For those looking to trade ETF, index, forex and shares with app in the form of Contracts for Difference (CFDs), there are various options which can include Tesla stocks. But more on that a little later. First, let’s look at how Musk managed to attain the top spot.

Tesla jets upwards

Tesla has enjoyed a spate of upward trends lately in the markets, having increased more than nine times over in 2020. Elon Musk started the year at a cool $27 billion net worth, but by July he had overtaken Warren Buffet to become the seventh richest person in the world. It didn’t stop there, because by November, Musk had sneaked past Bill Gates to become the second richest person. Tesla’s market value has increased by over $760 billion in 2020, and continues to soar, which, by 7th January, meant Tesla was worth more than the combined value of Toyota, Volkswagen, Hyundai, GM and Ford. So, it’s no wonder Musk was propelled to the top spot this year.

Elon Musk has an interesting take on the idea of wealth and had this to say on Twitter: “About half my money is intended to help problems on Earth, and half to help establish a self-sustaining city on Mars to ensure continuation of life (of all species) in case Earth gets hit by a meteor like the dinosaurs or WW3 happens and we destroy ourselves.” In true Musk style, he continues to dream bigger and bigger, with ideas far greater than just earth itself. It seems that perhaps the old saying “the world is your oyster” is in fact true for Elon Musk as he sets his sights beyond earth and aims to do the unthinkable.

The bottom line for Tesla

For those with an eye on the future of renewable energy, companies like Tesla certainly make for an interesting story. If you’ve been watching Tesla’s growth from the perspective of the financial markets, such volatility can present both opportunities and risks for certain informed traders who trade CFDs, or Contracts for Difference. CFDs allow you to take advantage of price changes in both directions (increases and decreases) without having to purchase the underlying asset (in this case actual Tesla shares).