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Tech entrepreneur, Elon Musk, overtook Microsoft founder Bill Gates and became the second richest person in the world, after a sudden surge in his personal fortune.
Musk’s fortune rose by $ 7.2 billion, to $ 128 billion, after shares in his automobile company Tesla jumped.
Amazon founder Jeff Bezos tops the list of the world’s richest people, according to the Bloomberg Billionaires Index.
Musk’s advance comes after news of the addition of Tesla shares to the S&P 500, one of the main stock indices in the United States.
This led to a new wave of buying shares of the electric car manufacturer, which increased its market value to more than $ 500 billion, and strengthened the value of Musk’s shares of the company.
Tesla is already the most valuable car company in the world, although its production is only a fraction of that of other competitors, such as Toyota, Volkswagen and General Motors.
Musk said Tuesday in a speech in Germany that it would be “logical” for Tesla to expand in Europe by entering the mass market sector with the production of a small car.
“In the United States, cars tend to be larger for reasons of personal preference. In Europe, people tend to be smaller cars,” he added.
After years of losses, Tesla has made profits over a period of five consecutive quarters, as its cars hit the market despite the epidemic.
The California-based company will be the biggest newcomer on the S&P 500, with a market value of more than $ 500 billion.
This means that investment funds that follow the index will automatically keep their shares and benefit from the gains in the share price, and this is what aroused the enthusiasm of investors.
Gates and Bezos
Microsoft’s co-founder Bill Gates was the richest person in the world for years, before Bezos removed him from first place in 2017.
Gates’s fortune is $ 127.7 billion, which would have risen further if he had not donated large sums to charity over decades.
Bloomberg estimates Jeff Bezos’s wealth at $ 183 billion. And his personal wealth increased this year as demand for Amazon services rose amid the pandemic.
Over the past few weeks, the often controversial Musk has seen eventful days.
Early last week, he wrote on Twitter that he was “probably” suffering from a moderate case of Covid-19, and had symptoms of “a mild cold.”
This came one day before the launch of four astronauts to the International Space Station in a rocket produced by Musk’s SpaceX company.