Elon Musk's net worth is back at $250 billion. Or in other words, as of Monday's market close, Elon Musk re-acquired quarter-trillionaire status. A casual observer may have assumed that Elon's fortunes have always just gone up… like one of his rocket ships. That's not the case. Elon's net worth is still severely impacted by the stock price of Tesla. Elon directly owns 13% of Tesla's outstanding shares and has 304 million exercisable options.
- On Monday, Tesla's stock price closed at $290 per share. At that level, Tesla's market cap is around $910 billion.
- On January 6, 2023, Tesla's stock was $113 per share. At that level Tesla's market cap was $357 billion.
Why The Tesla Stock Roller Coaster?Tesla's stock price dropped between mid-2022 and early 2023 for a number of reasons. First, the broader stock market was in a bear market. Second, Tesla faced some specific challenges, such as supply chain disruptions and production problems at its new Gigafactory in Berlin. Third, there was some investor concern about Tesla's valuation, which was seen as being very high. Tesla's stock price increased right back up to its previous highs over the last few months. This is due to a number of factors, including:
- The broader stock market has rebounded, and Tesla has benefited from this.
- Tesla has started to address its supply chain challenges and production problems.
- Investor sentiment towards Tesla has improved, and there is now more confidence in the company's future.
- Tesla has released some new and exciting products, such as the Model Y Plaid and the Cybertruck.