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Updated October 26th, 2021 at 09:11 IST

Elon Musk's net worth surges by $36 billion, biggest one-day gain in history of Bloomberg

Following the announcement of Hertz's intending to buy 100,000 Teslas for its rental fleet, Elon Musk’s personal fortune jumped by $36.2 billion on Monday

Reported by: Vidyashree S
elon musk
Image: AP | Image:self
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Following the announcement of Hertz's intending to buy 100,000 Teslas for its rental fleet, Elon Musk’s personal fortune jumped by $36.2 billion on Monday, October 25. This development has sent the company's market capitalization and its top executive's net worth soaring to new heights, resulting in the biggest one-day gain in the history of the Bloomberg Billionaires Index. 

According to a regulatory filing, a surge in Tesla stock isn’t the only source of wealth gains for the seventh tranche of Musk’s massive 2018 stock option package vested in the third quarter added about $8 billion to his net worth.

Elon Musk net worth

According to Bloomberg's estimation, Musk's net worth stands at $288.6 billion, eclipsing Toyota's $282 billion market value and Chinese tycoon Zhong Shanshan’s $32 billion surges. He's also worth significantly greater than the market value of Exxon Mobil Corp. or Nike Inc.

On the news of the Hertz order, Tesla Inc.'s shares rose 13 per cent, pushing its market value past $1 trillion. In the electric-car company, of which Musk is co-founder and chief executive officer, about two-thirds of his net worth is tied directly to shares and options in the company. It was observed that Tesla shares have climbed in recent weeks, even before the Hertz deal. As investors continue to reward green technologies, the auto maker’s stock price is up 45% this year, more than double the gain of the S&P 500 Index. 

When it comes to the size of his fortune, Musk is increasingly pulling away from his fellow mega-billionaires. According to the Bloomberg index., Amazon.com Inc.’s Jeff Bezos ranks second with $192.6 billion. 

Musk could gain billions of dollars in paper wealth and become the world’s richest person by having few liquid assets with the stock-based nature of his fortune. According to company filings, he doesn't take a salary from Tesla, and part of his stake is pledged as collateral for personal loans. In 2019, he informed a federal jury that he didn’t have much cash despite his multibillionaire status. In 2020, he took to Twitter to announce that he planned to sell his homes and most of his physical possessions.

(Image: AP)

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Published October 26th, 2021 at 09:11 IST

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