Elon Musk plays catch up with Jeff Bezos on rich list; Tesla stocks surge 20% to recoup some losses

Shares of Elon Musk’s company gained 20% on Tuesday as NASDAQ jumped 4% during the day. Tesla was quoting a price of $673 apiece on closing yesterday.

Elong Musk, Tesla
In order to address the wealth inequality in the US, the country had earlier this month proposed the ‘Ultra Millionaire Tax Act’ to levy 2 per cent annual tax on rich Americans. (Image: REUTERS)

Elon Musk seems to be catching up to Amazon Boss Jeff Bezos on the Billionaire’s index, after having given up the top spot earlier last month. Tesla chief’s wealth soared $25.1 billion yesterday as share price of the Electronic Vehicle manufacturer zoomed 20% on Tuesday as investors turned their focus back on stock while yields seemed to be relaxing. Elon Musk was the richest person in the world according to the Bloomberg Billionaires Index, for six weeks before Jeff Bezos reclaimed the position while Tesla’s stock price plummeted.

Shares of Elon Musk’s company gained 20% on Tuesday as NASDAQ jumped 4% during the day. Tesla was quoting a price of $673 apiece on closing yesterday, up from its previous closing levels of $563 per share. With this upward swing in the stock price, Tesla has managed to recoup some of the losses it suffered during the previous week. However, year to date the stock still trades 7% lower.

The steep fall witnessed by the stock is what could be luring investors back to Elon Musk’s company. According to CNBC, Ark Investment Management founder and CEO Cathie Wood has used the correction to purchase more shares of Tesla along with other companies. Tesla shares dropped 36% between the last week of January and the first week of March. 

Analysts have also upgraded the stock rating and targets. Pierre Ferragu, analysts at New Street Research has said that two years of earnings momentum lies ahead of the company while upgrading the stock to ‘Buy’ and upgrading the target to $900 per share. Tesla has also pushed back the delivery dates for its vehicles which hints at heightened demand for the Electronic Vehicles manufactured by the company, enforcing more confidence in the company.

Cryptocurrency Bitcoin has also recuperated some of its losses as it moved past the $54,000 mark, again helping Tesla’s stock price. Elon Musk’s company had recently bought $1.5 billion worth Bitcoin. 

Jeff Bezos still holds on to the top spot in the rich list with his net worth of $180 billion after having suffered $10.3 billion in year-to-date losses. Elon Musk, on the other hand, is valued at $174 billion. Musk has seen his wealth grow by $4.35 billion so far in 2021.

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First published on: 10-03-2021 at 10:11 IST