Elon Musk’s net worth has once again crossed the $500 billion mark, catalyzed by a notable increase in Tesla’s stock value amid easing trade tensions between the U.S. and China, a crucial market for the automaker. On Tuesday afternoon, shares of Tesla rose by 2.2% to around $462.50, building on a 4.3% increase from the previous day. This upward trend follows President Trump’s optimistic remarks about a potential resolution to ongoing trade disputes with China, which had recently threatened further tariffs.
In a significant development, Treasury Secretary Scott Bessent noted that Trump’s tariff threats had become “effectively off the table” following a constructive meeting with trade officials. This newfound optimism instigated a broader market rally, contributing to record highs for both the Dow Jones Industrial Average and the S&P 500.
Tesla’s performance in China, its second-largest market after the U.S., is worth highlighting, as the company reported an impressive 8.8% increase in sales, resulting in over 657,000 cars sold in 2024—a new record for the firm. Musk, who possesses approximately 12% equity in Tesla, witnessed an increase in his net worth of $6.6 billion, bringing it to an estimated $501.7 billion. He made headlines earlier this month for being the first individual to reach the $500 billion valuation and is now poised to potentially become the world’s first trillionaire, contingent upon shareholder approval of his ambitious $1 trillion pay package.
However, this proposed pay package has drawn criticism from several advisory groups, including Glass Lewis and Institutional Shareholder Services, which have advised Tesla shareholders to reject it. Moreover, Tesla chair Robyn Denholm raised concerns in a recent letter to investors, warning that Musk’s exit could negatively impact the company’s valuation, stating, “Without Elon, Tesla could lose significant value.”
Musk reclaimed the title of the world’s richest person in May 2024, following a successful funding round for his AI company, xAI. His financial climb has not been without obstacles, as he previously lost the title to Bernard Arnault of LVMH for a period. Musk has made history by being the first person to surpass both the $400 billion and the $500 billion milestones.
Despite Tesla’s successes, the company has faced challenges, including a decline in sales within Europe. The third-quarter earnings report also fell short of Wall Street’s expectations, reporting revenues exceeding $28 billion but earnings per share of $0.50, trailing behind the anticipated $0.56. Analysts believe that the recent sales spike may be associated with the looming expiration of federal tax credits for electric vehicles, which Musk has suggested could impact future results.
While there are hurdles ahead, Musk’s continued financial success is a testament to his resilience and innovation in the automotive and tech sectors. Tesla’s monumental achievements serve as a beacon of potential for the electric vehicle industry amid the shifting economic landscape.