Musk passed Facebook Inc. co-founder Mark Zuckerberg Monday as shares of Tesla Inc. continued their unrelenting rally after undergoing a forward stock split. Musk is now worth $115.4 billion compared with $110.8 billion for Zuckerberg, according to the Bloomberg Billionaires Index.
The 49-year-old PayPal founder has seen his wealth rise by $87.8 billion this year off the back of a surge in Tesla stocks, which have increased in value by 500%
There are now just two people in the world who have amassed more wealth than Musk – Microsoft founder Bill Gates, with an estimated wealth of $125billion and Amazon founder Jeff Bezos, with a fortune of $200billion.
Zuckerberg, who founded Facebook, is estimated to be worth $111billion, according to the Bloomberg Billionaires Index.
Tesla shares have been on a meteoric rise since October last year, and were only briefly dampened by the coroanvirus shutdown which hit in March.
It comes after the company began turning a consistent profit, meaning it could soon be added to the blue-chip S&P 500 index, further boosting its value.
The share value hit an all-time high of $935 per share on June 12 and had more-than doubled again by the end of last month, hitting $2,213 on August 28
Shares are now sitting around $500 each after the company completed a forward split – where a company multiplies the amount of shares each person holds.
The move doesn’t devalue the company overall, but it does reduce the value of each individual share, with the aim being to encourage more people to invest.
Tesla used a 5:1 split, meaning each shareholder now owns five times the number of shares they did before, while new investors will pay a fifth the price for new shares.
The company saw its overall value rise 10 per cent following the split, as new investors rushed to snap up the cheaper stocks.