Elon Musk expanded his fortune by $2.3 billion in an hour on Wednesday after Tesla Inc. shares shot up in extended trading on the fourth quarter earnings and increased production of its Model Y crossover SUV.
The stock that closed at %580.99 increased by 12 percent to $649 by 5.16pm in New York, shooting the CEO’s net worth to about $36 billion.
Elon Musk owns around a fifth of Tesla’s outstanding stock which is the bulk of his fortune and closely holds the Space Exploration Technologies Corp which accounts for about 14.6 billion. Tesla’s shares have been increasing since October. The company now values above $100 billion for the first time ever and if they continue to stay above the mark for a while, Musk will be eligible to unlock the first long-term compensation award that could bring him more than $50 billion if the performance targets are completed. Musk currently receives no salary or bonus. Tesla’s shares have doubled since the company reported a surprise profit and they informed investors that it was ahead of schedule for opening its factory in China.
Pierre Ferragu, New Street Research analyst has predicted that the company will sell $2 million to $3 million cars per year after 2025.