Elon Musk’s Fortune Soars After Tesla Is Included In The S&P 500

After an eventful week for tech entrepreneur Elon Musk, his personal fortune has shot up by more than $15bn (£11.3bn).

On Monday, it was announced that his electric car company Tesla has been accepted into the S&P 500, a major US stock market index.

An Eventful Week For The CEO

This comes after his rocket company SpaceX sent four astronauts into space.

On top of testing positive for Covid-19, Mr Musk is poised to become the world’s third richest person.

Tesla’s share price surged about 14% in New York following the news it was being added to the index. Given Mr Musk’s 20% stake in Tesla his net worth rose to $117.5bn, according to the Bloomberg Billionaires Index.

His wealth has jumped $90bn this year as Tesla’s share price has continued to rise.

Over the weekend, Mr Musk tweeted that he “most likely” had a moderate case of Covid-19 and has had symptoms of “a minor cold.”

This came the day before four astronauts were launched to the International Space Station in a rocket built by Mr Musk’s SpaceX.

Solid Entry Into The S&P 500

Tesla will enter the S&P 500 on 21 December following months of speculation and one setback in September when it failed to make the index.

The California-based car firm would be the biggest new entrant onto the US index, with a stock market value of over $400bn.

The company has now reported five consecutive quarters of profits, enabling it to meet the criteria for acceptance on the index. Tesla has recorded losses for much of its history.

By being included on the S&P 500, investment funds that track the index will automatically invest in Tesla.

World’s Most Valuable Auto Company

“(Tesla) will be one of the largest weight additions to the S&P 500 in the last decade, and consequently will generate one of the largest funding trades in S&P 500 history,” a spokesman for S&P Dow Jones Indices said.

The California carmaker has become the most valuable auto company in the world despite producing a fraction of the cars made by its bigger rivals Toyota, VW and General Motors.

Tesla expects to deliver up to 500,000 vehicles this year – compared with Toyota’s annual production of about 10 million.