Elon Musk net worth swells by $15 billion, set to become world's third-richest person
Tesla share prices surged about 14 percent on November 17, raising CEO Elon Musk’s net worth to $117.5 billion.
November 17, 2020 / 02:05 PM IST
Billionaire Elon Musk is on his way to become the third-richest person in the world, leapfrogging Mark Zuckerberg. Musk's net worth swelled by more than $15 billion in extended trading after S&P Dow Jones Indices announced that the California-based automaker will join the market index in December.
Tesla, whose stock closed at $408.09, surged about 14 percent on November 17, raising Musk’s net worth to $117.5 billion, according to the Bloomberg Billionaires Index.
Tesla will enter the S&P 500 on December 21 after failing to make the cut during the index’s quarterly rebalancing in early September. Based on its market value, the electric car maker would be one of the top 10 companies in the benchmark index upon entry. Tesla shares jumped nearly 14 percent in after-hours trading.
Read: Tesla to join S&P 500 in December, to be among top-10 companies upon entry
Tesla shares have soared 387.8 percent this year as the company is finally making money on a consistent basis after years of losses and continues to hit milestones for deliveries of its vehicles. Tesla earned $331 million in the third quarter on revenue of $8.77 billion.
S&P Dow Jones Indices said Tesla would be one of the largest companies added to the S&P 500 in the past decade. The company said it was considering adding Tesla in two stages on December 14 and 21.
Tesla's inclusion in the widely followed stock market index means investment funds indexed to the S&P 500 will have to sell about $51 billion worth of shares of companies already in the S&P 500 and use that money to buy shares of Tesla, so that their portfolios correctly reflect the index, according to S&P Dow Jones Indices. Tesla will account for about 1 percent of the index.