Topline
Elon Musk’s net worth eclipsed $500 billion again Tuesday as Tesla’s shares have risen in recent days, as the automaker appeared to benefit from warming trade negotiations between the U.S. and China, which accounts for more than one-fifth of Tesla’s sales.
Tesla’s stock has risen in recent days as trade negotiations between the U.S. and China have cooled.
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Key Facts
Shares of Tesla rose 2.2% to around $462.50 as of Tuesday afternoon, following a 4.3% rally on Monday.
President Donald Trump, who earlier this month threatened China with 100% tariffs after Chinese officials unveiled trade restrictions on rare earth minerals, said Monday the U.S. and China would likely “come away with” a trade deal before Trump met with Chinese President Xi Jinping.
Treasury Secretary Scott Bessent said Sunday that Trump’s tariff threat was “effectively off the table” after a “very good” meeting with trade officials, sparking a broader market rally as trading opened Monday, which concluded with the Dow Jones Industrial Average and S&P 500 closing at record highs.
Tesla’s annual sales in China, the automaker’s second-largest market behind the U.S., rose 8.8% to a record high of more than 657,000 cars in 2024.
Forbes Valaution
Musk, who holds roughly 12% equity of Tesla, is the richest person in the world with a fortune estimated at $501.7 billion. His net worth rose by $6.6 billion (1.3%) on Tuesday as Tesla shares continued a rally. He became the first person ever to be worth $500 billion earlier this month, and it’s possible he could be the world’s first trillionaire should Tesla shareholders approve Musk’s $1 trillion pay package. Some groups have opposed Musk’s pay package, including Glass Lewis and Institutional Shareholder Services, which advised Tesla’s shareholders to vote against the payment plan. In a letter to shareholders on Monday, Tesla chair Robyn Denholm warned investors that Musk could leave Tesla if the pay plan is rejected, claiming, “Without Elon, Tesla could lose significant value, as our company may no longer be valued for what we aim to come.”
Key Background
Tesla reported a record number of vehicle deliveries through its latest quarter, even as sales declined in Europe, yet its latest earnings report fell below Wall Street’s projections. Revenues soared above $28 billion in Tesla’s third quarter, boosted by the sales record, but the automaker reported earnings per share of $0.50, coming below estimates of $0.56. Some analysts attributed the rise in sales to the expiration of a federal tax credit for electric vehicle purchases, which Musk suggested earlier in the year could disrupt Tesla’s upcoming quarters.
Further Reading
