close
close

first Drop

Com TW NOw News 2024

    • Tesla Stock’s 17% Rally Adds Billion To Elon Musk’s Net Worth
    news

    Tesla Stock’s 17% Rally Adds $20 Billion To Elon Musk’s Net Worth

    Vaseline Posted on

    Topline

    The world’s richest person got much richer on Thursday as Tesla CEO Elon Musk enjoyed a big rally for Tesla shares after the electric car company’s latest earnings report cheered Wall Street.

    Key facts

    Tesla’s stock price rose nearly 17% at 10 a.m. EDT, holding back the massive after-hours trading boom.

    That’s because investors responded positively to the big third-quarter profit, the most cash generation in eight quarters and several encouraging tidbits Musk shared at the accompanying analyst conference, such as a forecast for vehicle deliveries to grow up to 30% by 2025 ., reversing this year’s 2% year-over-year decline in deliveries in the first three quarters.

    The earnings report “reminds us that growing the auto industry profitably remains a high priority for Tesla,” Morgan Stanley analyst Adam Jonas wrote, citing previous concerns about Tesla’s shrinking profit margins as it emphasizes self-driving car initiatives.

    Forbes rating

    The rally added $20.4 billion to the fortune of Tesla’s largest shareholder Musk, whose lead as the world’s richest person grew to more than $50 billion by our calculations.

    Surprising fact

    Thursday is on track to be Tesla’s best day since March 2021 and the sixth-best percentage gain of the past decade, up from the 15.3% gain on April 29, when Musk’s surprise visit to China sparked a rally from 15.3 % caused.

    Chief critic

    Despite the overwhelmingly positive stock reaction, this wouldn’t be a Tesla event if it wasn’t polarizing. Bernstein analyst Toni Sacconaghi called Wednesday’s earnings call “more akin to a pep rally” than a typical meeting, noting that the company took unusually light answers to two questions from sell-side analysts discussing the stock.

    Big number

    $110 billion. That’s about how much market cap Tesla added on Thursday. The rally turned the stock’s performance this year from a 14% loss through Wednesday to a 1% gain.

    Tangent

    Musk has reportedly received a letter from the Justice Department warning that his pro-Donald Trump political action committee may be violating federal law by awarding $1 million to certain swing state voters, as Musk is one of the largest political donors this election cycle will be with his support of Republican candidate Trump.

    Read more

    ForbesTesla Delivers Robust Q3 Earnings as Musk’s Company Returns to Earnings Growth: Shares Rise 12%By means of Derek Saul

    ForbesDOJ is reportedly warning Elon Musk that his $1 million voter gifts could be illegalBy means of Alison Durkee

    Vaseline
    View all posts

    You Might Also Like