Elon Musk briefly becomes fifth-richest person

Elon Musk briefly becomes fifth-richest person

Elon Musk

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Reuters

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Elon Musk operates both Tesla and the space exploration company SpaceX

Tesla chief Elon Musk briefly became the fifth wealthiest person earlier in the week, thanks to the dizzying share price of the electric car maker.

His net worth reached $ 74 billion (£ 58.5 billion).

Since then, Tesla’s share price has declined slightly, placing Musk in eighth place, according to the list of billionaires in the world of Forbes.

In a related development, his wealth could be further strengthened as he just got the chance to buy and sell Tesla shares worth $ 2.1 billion.

In a payment agreement approved by the shareholders in 2018, Musk obtained the right to purchase 1.69 million shares once Tesla’s shares had reached an average market capitalization of $ 150 billion over a six-month period.

However, the board of the electric car company has yet to certify the option and Mr. Musk has not yet purchased the shares in question.

He would also have had to wait several years before he could sell.

‘Too high’

Tesla’s share price has almost quadrupled since the beginning of the year, from $ 430 to around $ 1,550.

But the company has yet to make full-year net profit, leading some analysts to argue that its stock is currently overvalued.

On May 1st, Musk himself tweeted Tesla’s share price was too high.

The entrepreneur said that the reason he seeks to acquire personal wealth is to finance his efforts to send people to Mars.

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