Tesla Stock Rebounds... Musk Regains Title of World's Richest Person

Elon Musk, CEO of Tesla, has reclaimed the title of the world's richest person, buoyed by a rebound in Tesla's stock price. This comes just over two months after he lost the top spot to Bernard Arnault, chairman of France's Louis Vuitton Mo?t Hennessy (LVMH).

According to Bloomberg's Billionaires Index on the 27th (local time), Musk's net worth stood at $187.1 billion (approximately 247 trillion KRW) based on the closing price that day, surpassing Arnault's $185.3 billion by $1.8 billion (about 2.38 trillion KRW) to take first place.

Arnault, who owns over 70 luxury brands including Louis Vuitton, Christian Dior, and Tiffany, had overtaken Musk in December last year to become the world's richest person.

Musk's return to the top spot is thanks to Tesla's stock price rebound. On that day, Tesla's stock closed at $207.63, up 5.46% from the previous session on the New York Stock Exchange. Tesla's stock has surged nearly 70% this year, largely recovering the losses from last year.

With expectations that the economic recovery and rising interest rates will stabilize, bets on growth stocks have poured in, causing Tesla's stock to surge 100% from its low point during intraday trading on the 6th of last month. The announcement of strong fourth-quarter earnings and expectations of increased sales due to electric vehicle price cuts on the 25th of last month also boosted the stock price. Notably, the stock rose for eight consecutive trading days from the 31st of last month, marking its longest rally in six months.

Bloomberg reported that Musk's donation of 11.6 million Tesla shares (worth about $1.9 billion) from August to December last year did not affect his net worth. As a result of this donation, Musk's Tesla stake has now decreased to about 13%.

The direction of Tesla's stock price depends on new car launches and plans for a "half-price electric vehicle." The market is focusing on the "Investor Day" event on the 1st of next month, where Tesla's long-term plan blueprint, "Master Plan 3," will be unveiled. Musk described Master Plan 3 on Twitter on the 7th as "the path to a perfectly sustainable energy future for the Earth." In this regard, Wall Street expects Musk to reveal plans for Tesla factory expansions and capital investments through Master Plan 3, while paying close attention to whether he will detail the half-price electric vehicle plan.

Foreign media reported that Musk postponed plans for a $25,000 electric vehicle known as "Model 2" last year, adding that Tesla fans are eager to hear about Musk's plans for an affordable Tesla car. In the past, Musk repeatedly emphasized that his goal was to reach a point where two electric vehicles could be produced for the cost of one Model 3, and that he would eventually produce a $25,000 electric vehicle.

Wells Fargo evaluated that if Tesla releases a $30,000 low-cost model, it would have a lineup capable of meeting up to 95% of total automobile market demand, and that the half-price electric vehicle plan would become a new growth driver for Tesla. Additionally, Wall Street is paying attention to affordable electric vehicle battery production, the launch of the electric pickup truck "Cybertruck," new factory locations, and robo-taxi plans at this Investor Day event alongside the half-price Tesla.

[Image source=Reuters Yonhap News]