The world famous business magnate, and industrial designer, Elon Musk has been catapulted into an all new stratospheric financial realm since the victory of Donald Trump in 2016. Over this period, Elon Musk’s net worth has monstrously surged by a staggering $70 billion, majorly due to the steep and unexpected surge in the stock prices of his electric car company, Tesla, Inc.
Elon Musk founded Tesla, Inc. back in 2003 with a strong motive to accelerate the world’s transition to sustainable energy. Dedicated to producing electric vehicles and renewable energy products, Tesla’s business model seemed to be pretty unique and futuristic. But, who could predict that this car manufacturing company would become a complete gold mine for its pioneering founder?
Over the past four years, since Trump’s victory in 2016, Tesla shares have been on a supreme bull run that has outclassed every other stock in the market. Tesla stock surged from about $180 per share in November 2016 to about $2,300 in August 2020, pre-split. It was an unexpected and unprecedented increase by any standard.
A principal reason for this bewildering performance of Tesla stock can be attributed to the company’s potential to revolutionize the automobile industry with its electric vehicles. The escalating concerns related to climate change and the new government policies introduced to promote electric vehicles worldwide has positively impacted the value of Tesla stocks. As the creator of some of the most innovative and appreciated electric vehicles on the planet, Tesla has successfully positioned itself as a formidable leader in the global EV market.
Additionally, during his time in office, irrespective of his controversial reign, President Trump’s policies were generally seen as favorable to manufacturers and businesses. Corporate tax rates were slashed from 35% to 21%, providing a significant financial boost to businesses, thereby indirectly benefiting Musk.
Elon Musk’s vast empire includes his leadership roles in several other companies like SpaceX, Neuralink and the Boring Company. However, the major chunk of his rapidly increasing net worth can be traced back to the escalating prices of Tesla shares. Musk’s wealth skyrocketed in tandem with the propulsion in Tesla’s stock prices.
But Tesla’s stock surge hasn’t just made Musk wealthier. A significant part of Musk’s compensation plan with Tesla is also based on the company meeting market capitalization and operational milestones. As Tesla’s market cap has grown, so too has Musk’s potential pay.
Musk’s journey to become one of the wealthiest individuals on the planet has not been a smooth ride, courting multiple controversies and overcoming several challenges. His statements regarding Tesla’s stocks being ‘overvalued’ and decisions to demonstrate a Semi-Truck and Roadster before the Model 3 production was properly up and running, earned him backlash. But Musk’s conviction in his futuristic vision and enduring efforts have managed to eclipse these bumps on his road to this monumental wealth accumulation.
In a nutshell, the $70 billion growth in Elon Musk’s net worth since Trump’s victory in 2016 has been an extraordinary journey. It’s a journey marked by a record-breaking surge in Tesla stock prices, favourable government policies, innovative strides in electric vehicle technology, and unwavering faith in a greener, more sustainable future.
