Tesla Stock Price at $424.77... Up 69% Since US Presidential Election
Wall Street Raises Target Price
Musk Becomes World's First to Surpass $400 Billion Net Worth
SpaceX Valuation Also Rises
The stock price of American electric vehicle company Tesla reached an all-time high, making Tesla CEO Elon Musk the first person in human history to surpass a net worth of $400 billion (approximately 572 trillion KRW). The increase in the valuation of SpaceX, the space company founded by Musk, also significantly contributed to the expansion of his net worth. Bloomberg estimated Musk's net worth at $439.2 billion (approximately 628 trillion KRW).
On the 11th (local time), Tesla's stock price closed at $424.77 per share, up 5.93% from the previous session on the New York Stock Exchange. This far exceeded the previous record high of $409.97 (closing price on November 4, 2021), marking the highest level in about 3 years and 1 month. It was also the sixth consecutive trading day rally since the 4th.
At the beginning of the year, Tesla's stock price was sluggish due to a slowdown in the growth of the electric vehicle market, but it has surged sharply following the election victory of Donald Trump as U.S. president. Musk, who supported Trump since his candidacy, has emerged as a close ally, and analysts say his strengthened political influence is pushing up the stock price.
Tesla's stock price has soared about 69% compared to the election day on the 5th of last month. Expectations that the Inflation Reduction Act (IRA) electric vehicle tax credit, which is likely to be abolished and would have dealt a much bigger blow to other automakers than Tesla, and the easing of autonomous vehicle regulations under Trump's second administration are also driving Tesla's stock price.
Wall Street is also raising Tesla's target price. The day before, Morgan Stanley raised Tesla's target price from $310 to $400. It gave an 'overweight' rating and named Tesla the 'top pick' in the automotive sector.
The valuation of SpaceX, a private company founded by Musk, is also growing significantly. SpaceX recently pursued an insider stock sale, which values the company at about $350 billion. Bloomberg reported that this increased Musk's net worth by about $50 billion due to his substantial holdings in SpaceX. Currently, there is also anticipation inside and outside the market that Musk's strengthened political influence will lead to deregulation related to space business in the future, potentially increasing SpaceX's profitability. Additionally, the valuation of xAI, an artificial intelligence (AI) startup founded by Musk, has doubled to $50 billion in just half a year.
As a result, Musk's net worth has surpassed $400 billion. According to the Bloomberg Billionaires Index, Musk's net worth is estimated at $439.2 billion. Musk is the first person in human history to have a net worth exceeding $400 billion.
Bloomberg reported, "Musk's net worth has surpassed $400 billion for the first time in history," adding, "Musk's wealth has surged 66% since Trump's victory."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
