Automaker CEO Elon Musk becomes world richest man

Chief Executive Officer of electric car company, Tesla, Elon Musk, has become the world’s richest man, with a net worth of more than $185 billion.

The South Africa-born American overtook Jeff Bezos, Amazon CEO, on Thursday, following a 4.8 per cent surge in Tesla’s share price, US media said on Thursday. Bezos had been the richest person since 2017 and is currently worth about $184 billion.

Musk is a major shareholder of the electric car company and has benefited from Tesla’s surging share price over the last year. CNBC estimated Musk’s wealth at $185 billion.

Musk, who also leads the aerospace venture SpaceX in addition to Tesla, has become a pacesetter for the car industry as conventional automakers try to catch up with Tesla’s lead in electric autos.

Tesla recorded tremendous success in 2020 as it ramped up auto production, broke ground on new factories and reported a series of profitable quarters.

This enabled its shares to rise more than 700 per cent during the year as it was added to the prestigious S&P 500 index.

According to CNBC, Musk started 2020 with about $27 billion, and was barely in the top 50 richest people.

Tesla’s rocketing share price — which has increased more than nine fold over the past year — along with his generous pay package has added more than $150 billion to his net worth.

Musk passed Warren Buffett in July to become the seventh-richest person. In November, Musk raced past Bill Gates to become the second-richest person. Musk has gained more wealth over the past 12 months than Bill Gates’ entire net worth of $132 billion.

Shares of Tesla on Thursday surged 5.9 per cent to $800.43 in late morning trading, lifting the company’s market capitalisation above $750 billion.