Tesla Stock Hits Record High as Musk’s Wealth Soars
Tesla shares reached an all-time high on Wednesday, surpassing the previous peak set in 2021.
Elon Musk, the billionaire industrialist, has experienced a significant boost in his net worth in recent weeks, thanks to Tesla’s soaring stock price. This development further cements his position at the top of the global wealth rankings.
As of December 11, Musk’s fortune stood at $447 billion, according to the Bloomberg Billionaires Index. This figure is 79% higher than the wealth of Amazon founder Jeff Bezos, who holds the second spot with a net worth of $249 billion.
Musk’s recent financial surge coincided with Tesla’s stock rally following Donald Trump’s re-election as U.S. President. Additionally, Musk has been appointed as a co-leader of the Department of Government Efficiency (DOGE), a new advisory board created during Trump’s second term, alongside entrepreneur Vivek Ramaswamy.
On November 5, the day of the presidential election, Tesla’s stock closed at approximately $251. By December 11, it had climbed to over $424, marking a nearly 69% increase. Musk’s personal fortune also rose by a similar percentage during this time, as he holds a 13% stake in Tesla.
Tesla’s latest share price of $424 marks its highest ever, breaking its November 2021 record. On Thursday, the stock briefly touched $429 before settling around $423 by midday.
Tesla’s Growth Outlook and Challenges
Wedbush, a wealth management firm, maintains an optimistic outlook on Tesla’s prospects. The firm predicts that the automaker will achieve a $2 trillion market valuation next year, up from its current $1.3 trillion. Dan Ives, managing director at Wedbush, emphasized the importance of Tesla’s advancements in autonomous driving, full self-driving (FSD) technology, and the anticipated launch of the Cybercab by early 2026.
The Cybercab, a fully autonomous, five-seater vehicle without pedals or a steering wheel, was unveiled by Musk in October. Priced under $30,000, the Cybercab is projected to have operational costs as low as $0.20 per mile.
However, not all analysts share this optimism. DBS Bank warned in an October report that rising competition, particularly from Chinese EV manufacturers like BYD, and a slowing global economy could pose risks to Tesla’s sales and earnings. More than 22% of Tesla’s revenue last year came from the Chinese market, highlighting the potential impact of these challenges.
Safety Concerns and Legal Scrutiny
Tesla’s autonomous driving systems have faced increased scrutiny. In April, the company settled a lawsuit over a 2018 fatal crash involving its Autopilot system. The National Transportation Safety Board determined that the driver had been distracted before the crash but also criticized Tesla’s system for failing to ensure driver engagement.
In October, the National Highway Traffic Safety Administration launched an investigation after a pedestrian was struck by a Tesla operating in self-driving mode.
Musk’s Business Empire
Tesla remains Musk’s primary source of wealth, but the entrepreneur has diverse business interests. He holds a 79% stake in social media platform X, a 42% share in SpaceX, and investments in ventures like Neuralink, xAI, and The Boring Company.
Musk also made significant political contributions this year, donating over $238.5 million to a Trump-backed political action committee. His involvement in the newly created DOGE advisory board highlights his influence on U.S. policy.
Meanwhile, a Delaware judge recently reaffirmed the invalidation of Musk’s $56 billion Tesla pay package, which had been approved by shareholders.