Elon Musk, the richest man in the world, has experienced spectacular increases in his wealth valuation in recent weeks amid high buying pressure witnessed on Tesla stock.
The billionaire who was born in South Africa has a staggering $269 billion in net worth as of 2022, making him the richest person in the world. He has also recovered most of the losses from the previous market collapse as a result of investors’ large bets on the stock of the electric car manufacturer due to favorable macroeconomic factors.
Recall that Musk’s net worth peaked in November of last year at nearly $340 billion and later dropped to $197.1 billion in May, a 42% fall.
Thanks to a surge in growth stocks, Tesla outpaced both the tech-heavy index and the overall S&P 500 Index, rising about 50% from a late-May low.
Tesla approves 3-for-1 stock split
In an effort to draw in even more ordinary investors amid a ferocious surge since late May, Tesla Inc. shareholders approved a three-for-one stock split on Thursday.
The split will lower Tesla’s share price to around $300, though the Austin, Texas-based business did not immediately state when it will go into effect. Tesla first tweeted about its strategy on March 28.
This will be Tesla’s second share split in under two years. In 2020, the business underwent a five-for-one stock split, which resulted in a 60% increase in share price between the day of the announcement and the execution date. The business already has a sizable base of regular investors, making it a popular stock.
At the Tesla 2022 shareholders meeting on Thursday, investors questioned CEO, Elon Musk about his forecasts for the world economy and the company’s financial goals.
Despite joking that “making macroeconomic prognostications is a recipe for calamity,” Musk projected that “we are above peak inflation” and likely to have a “very moderate recession” lasting for about 18 months.
The CEO’s economic analysis was based on commodity pricing. Tesla is being asked to pay for the materials and goods it requires to build electric vehicles.
“Because you have to buy commodities several months in advance of when they’re needed when you’re building millions of cars, we do get a good amount of insight into where prices are moving over time,” Musk added.
As he declared his intention to pull out of the $44 billion acquisition of Twitter, the billionaire made headlines. He cited worries about spam accounts and said that the company was “in significant breach of various terms” of the merger agreement.