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topicnews · October 24, 2024

Tesla stock’s best rally in 11 years adds billion to Elon Musk’s net worth

Tesla stock’s best rally in 11 years adds $27 billion to Elon Musk’s net worth

Topline

The world’s richest person got a lot richer on Thursday as Tesla CEO Elon Musk saw a historic rally in Tesla shares after the electric vehicle maker’s latest earnings report encouraged Wall Street.

Important facts

Tesla’s stock price rose about 22% in Thursday trading, marking its second-largest percentage gain ever and its best day since May 9, 2013.

This came as investors reacted positively to the big third-quarter earnings beat, the highest cash generation in eight quarters, and several encouraging anecdotes that Musk shared on the accompanying analyst conference call, such as a forecast for vehicle shipments to grow by to 30% in 2025 This reversed this year’s 2% year-on-year decline in deliveries in the first three quarters.

The earnings report “reminds us that profitable growth in the auto business remains a high priority for Tesla,” Morgan Stanley analyst Adam Jonas wrote, alluding to previous concerns about Tesla’s shrinking profit margins as the company’s focus focuses on initiatives for self-driving cars.

Forbes rating

The rally added $26.9 billion to the wealth of Tesla’s largest shareholder, Musk, whose lead as the world’s richest person grew to over $55 billion, according to our calculations.

Main critic

Despite the overwhelmingly positive stock reaction, this wouldn’t be a Tesla event if it weren’t polarizing. Toni Sacconaghi, an analyst at Bernstein, called Wednesday’s earnings release “more like a pep rally” than a typical meeting, noting that the company gave an unusually casual answer to two questions from sell-side analysts covering the stock .

Big number

150 billion dollars. This is how much market capitalization Tesla added on Thursday. The rally turned the stock’s year-to-date performance from a 14% loss through Wednesday to a nearly 5% gain.

tangent

Musk reportedly received a letter from the Justice Department warning that his political action committee supporting Donald Trump may be violating federal law by allocating $1 million to certain swing state voters because of Musk’s endorsement One of the biggest political donors this election cycle will be GOP candidate Trump.

Further reading

ForbesTesla delivers solid Q3 results as Musk’s company returns to profit growth – shares jump 12%From Derek Saul
ForbesThe Justice Department is reportedly warning Elon Musk that his $1 million in voter gifts may be illegalFrom Alison Durkee

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