Science & Technology

Musk’s Wealth Rises Most since Buying Twitter

Elon Musk’s net worth has risen after falling to its lowest level in almost a year in the past five days.

The net worth of the third richest person in the world increased by about $37.3 billion, according to the Bloomberg Billionaires Index. The amount represents his largest weekly gain since March 2022, before he agreed to buy Twitter for $44 billion in one of the largest debt-financed takeover deals in history. Since then, his wealth has declined by as much as it increased after a dramatic rise in 2020 and 2021.

The third richest person’s net worth surged by $37.3 billion, marking his biggest weekly gain since March 2022. This gain follows his $44 billion acquisition of Twitter, one of the largest debt-financed deals ever. Despite a significant rise in 2020 and 2021, his wealth had previously decreased by a similar amount.

Tesla shares surged to a three-year high after reports of preliminary approval from Chinese officials for using an app to aid drivers in the largest car market. Last week’s announcement of plans for a cheaper car also buoyed investor sentiment, easing worries about profit downturns.

Musk added $18.5 billion to his wealth yesterday, Monday, the 13th market-driven daily gain for any billionaire on the Bloomberg Wealth Index, and the seventh-largest gain for Musk. With a net worth of $201.5 billion, Musk is close to overtaking second place Jeff Bezos, after he beat Mark Zuckerberg last week.

Musk, 52 years old, derives his wealth primarily from his stake in Tesla, in addition to his shares in Space Exploration Technologies Corp. and X, formerly known as Twitter.

 Bright Spot in Musk’s wealth

Before its recent rise, Tesla stock had become the worst-performing S&P 500 stock of the year due to price cuts and a sudden decline in electric vehicle sales. X’s value has declined by about 73% since Musk bought it two years ago, according to an assessment issued in March by the Fidelity Blue Chip Growth Fund, one of the investors in the X deal. SpaceX is Musk’s most prominent wealth asset, with its value rising over 40% between mid-2022 and the end of 2023.

But the billionaire is still facing pressure inside America. Tesla asked shareholders to vote again on a $56 billion compensation package for Musk, which was invalidated by a Delaware court early this year. If this package is rejected, Musk will face the risk of losing stock options, which constitute nearly a quarter of his net worth, according to the Bloomberg Wealth Index.

In a related context, the US Supreme Court decided not to consider Elon Musk’s appeal in the case known as the “Twitter Censor” to invalidate part of the securities fraud settlement with the Securities and Exchange Commission (SEC). This settlement includes a clause that restricts Musk’s ability to write tweets about Tesla without the supervision of an internal lawyer from the company.

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