- Elon Musk became $1.4 billion (about R18.8 billion) richer on Tuesday as Tesla's stock surged after he tweeted that he was thinking of taking the company private.
- With a $25.8 billion net worth, he's the world's 31st richest person.
- He's also Tesla's largest shareholder.
The tweet was only 61 characters long, but it was powerful enough to make Tesla CEO Elon Musk $1.4 billion richer.
Musk tweeted on Tuesday that he was considering taking Tesla private at $420 a share and had secured the funding.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Many other companies would halt trading of their stock before disclosing news of such importance to their shareholders, and the announcement would be made in a regulatory filing. However, Musk is not one to be Twitter-shy, and his unexpected post sent Tesla's shares skyrocketing.
The shares were already flying after the Financial Times reported that Saudi Arabia's investment fund had bought a $2 billion stake in the company.
Musk's tweet was the extra fuel that spiked Tesla's shares within reach of their all-time high. They closed up 11% at $379.57 apiece, lifting his net worth to $25.8 billion. He is the world's 31st richest person, according to a Bloomberg ranking of billionaires.
Musk could climb the ranking faster if investors decide Tesla is worth more than its current $58 billion market cap. As Tesla's largest shareholder, Musk owns nearly 20% of the outstanding shares and stands to gain as the stock price rises.
However, he may not reap an instant reward in the event that Tesla goes private at $420 a share. The value of his shares at that price would total $72 billion, short of the $100 billion performance bar it must cross for him to be able to exercise his $2.6 billion stock-option grant, Bloomberg noted.
Tesla's stock is up 25.5% in August. Investors who bet against Tesla's stock — so-called short sellers — have lost $3 billion on their wagers, according to the financial-analytics firm S3 Partners.
In other words, as Musk has gotten richer this month, his skeptics have lost money.
Receive a single WhatsApp every morning with all our latest news: click here.
Also from Business Insider South Africa:
- Cape Town Uber prices triple as a taxi strike leaves commuters stranded
- Seven parking bays sold instantly for R570,000 each in Cape Town - and owners have to pay monthly levies as well
- The director of one of London's wildest members' clubs reveals what goes on behind closed doors
- South Africans are buying more bully beef - and six other new shopping trends
