The huge car order by Hertz to Tesla on Tuesday, October 26, has helped Elon Musk to list himself on the top of the rank as the richest individual in the world. He exceeded $1 trillion on Monday. There has been an approximately 13% surge in Tesla stock with more than 16 million new stock options, worth $16.1 billion, awarded with a view of Tesla’s latest earnings report.
Musk’s 21% stake in Tesla (discounted for loan obligations) comprises the lion’s share of his fate, but he also has a minority stake in the privately helmed rocket company he established in 2002 called ‘SpaceX.’ The business was most recently was highlighted when investors invested $74 billion, following a February funding round.
With Tesla, Musk becoming the richest man on the planet, one thing that’s clear is that the stock needs to be public and not private. Because if he would have taken Tesla as a private firm then it wouldn’t have traded publicly. And retail investors would have been in no position to bid up the price. It would be worth some ambiguous amount of $80 billion.
The stock market has remunerated him with delirious profusion, by making his firm of a massive valuation than any and every other car company combined and resulting in Musk becoming the richest person in the world. This wouldn’t have been possible if he had made Tesla a private company! Elon Musk is challenging the general norms of business and market being the staunch supporter of cryptocurrency.