Elon Musk, the world’s richest person, on Thursday added $21 billion to his net worth as Tesla’s stock witnessed a spike of 19 per cent on Wall Street. The electric vehicle company’s latest earnings report sparked a major rally.
Tesla’s share price spiked more than 19% by 11:30 a.m. EDT, reported Forbes.
Investors in the American market reacted positively to the company’s third-quarter profit, which was the most in the previous eight quarters.
Morgan Stanley analyst Adam Jonas told the magazine that the earnings report “reminds us that growing the auto business profitably remains a high priority for Tesla.”
Elon Musk, who is the largest shareholder of Tesla, added a whopping 21 billion dollars to his already massive net worth. Now he leads the second richest person in the world by a massive $50 billion, the magazine reported.
This was Tesla’s best day on the stock market since March 2021.
On Thursday, Tesla added a market capitalization of $117 billion.
The Elon Musk-led company reported third-quarter profits of $2.2 billion, up 17 per cent from the year-ago period on an eight-percent increase in revenues to $25.2 billion.
“For now, the excitement over Tesla’s report and outlook seems to be doing most of the driving,” said market analyst Patrick O’Hare at Briefing.com.
What Elon Musk announced on Wednesday
The investor sentiment was also buoyed by Elon Musk’s announcements on Wednesday. He said the electric vehicle maker will roll out driverless ride-hailing services to the public in California and Texas next year.
“We think that we’ll be able to have driverless Teslas doing paid rides next year,” Musk said on Tesla’s quarterly earnings call.
He said Tesla currently offers an app-based ride-hailing service, with a safety driver, to employees in the San Francisco Bay Area.
His statement doubled down and expanded on a pledge he made at Tesla’s Robotaxi unveiling two weeks ago, where he said he expected to roll out “unsupervised” self-driving in certain Tesla vehicles in 2025.
With inputs from AFP