HA VIEWPOINT(94HA.COM): US billionaire Elon Musk’s net worth hit a record high of US$347.8 billion (S$467.1 billion) last Friday (November 22), thanks to the continued rise in Tesla’s share price and the valuation of his artificial intelligence startup xAI reaching US$50 billion in a new round of financing.
Bloomberg News reported that since Trump’s victory in the US presidential election, Musk, as an “ally”, has also become a political focus, and the value of his many businesses has been soaring.
Tesla’s stock price rose 3.8% last Friday. Since the day before the US presidential election on November 4, Tesla’s stock price has risen 45%, and its market value has increased by about US$350 billion; at the same time, xAI’s valuation has more than doubled since the completion of the last round of financing in May. SpaceX, another company owned by Musk, is also in preliminary discussions to sell internal shares, a deal that could raise the company’s valuation to about US$255 billion.
Tesla stock and options account for two-thirds of wealth
Two-thirds of Musk’s wealth comes from Tesla’s stock and options. Musk is now the world’s richest man, according to the Bloomberg Billionaires Index, breaking his previous record of $340.4 billion in November 2021.
It is reported that the Trump team plans to make the development of a federal regulatory framework for fully autonomous vehicles one of the priorities of the Department of Transportation. This is undoubtedly good news for Tesla, as it may enable the wider deployment of driverless cars, and Tesla has made the launch of such cars and trucks a core part of its future strategy.
Current US federal policy only allows Tesla and other automakers to deploy 2,500 fully autonomous vehicles per year. In Tesla’s latest earnings call, Musk complained that the regulatory laws and regulations in California and other places are chaotic, limiting Tesla’s ability to expand its autonomous driving technology.
But after Trump takes office as president, Musk will co-lead the newly established “Department of Government Efficiency”, which he said he would use to cut bureaucracy and redundant regulations.
While Trump’s plan to eliminate a $7,500 tax credit that consumers can get when they buy electric vehicles, a report from Bloomberg Intelligence noted that it would have a greater impact on traditional automakers because Tesla’s sales are less dependent on federal support than many of its competitors.
