Elon Musk’s value rises to $ 304 billion as Tesla shares soar after the automaker launched nearly a million vehicles in 2021

Elon musk and his son, Elon musk Son

Elon Musk and his son X Æ A-Xii at a Time Person of the Year event on December 13, 2021 in New York City(Theo Wargo / Getty Images for TIME)

The world’s richest man started the richest new year with Tesla founder Elon Mask adding $ 32.6 billion to his net worth, bringing his fortune to $ 304.2 billion. first person to do so.

According to Forbes, the controversial social media billionaire who is also the founder of the commercial space company SpaceX remained at the top of the world’s richest list for the new year. In second place, and with $ 103.6 billion behind Musk, is Bernard Arnault, CEO of the French fashion empire LVMH. Amazon founder and former CEO Jeff Bezos ranks third, Forbes said.

The rise in Tesla’s share price has again been attributed to the growing wealth of South Africa.
The electric car maker said it delivered more than 936,000 cars in 2021, beating analysts’ forecasts, but it also said the company had recalled 475,000 of its cars built between 2014 and 2021. Forbes said

Shares of Tesla had risen more than 13% when the market closed, and the company’s market capitalization again surpassed the $ 1 trillion mark after falling below that level last month. As CEO of Tesla, Musk, named Person of the Year 2021 by Time magazine, owns about 15.6% of the company’s stock. He has continued to sell shares, ending the year after selling 3 million shares on the open market to meet taxes on the approximately 5.7 million share options he exercised at the same time.

If true, this would place it among the largest individual taxpayers in US history, although this only accounts for about 0.0036 percent of its value.

He reportedly sold 15.7 million Tesla shares over the course of 2021, worth more than $ 16 billion before taxes.

Musk’s fortune jumped more than $ 200 billion in 2020 and 2021. In 2021 alone, he added $ 116 billion to his net worth.

This, Forbes said, is the biggest one-year gain for any billionaire since the news outlet began tracking the wealth of high-net-worth individuals.

Musk is set to make another windfall later this month when Tesla reports its fourth-quarter earnings. If the company meets certain operational and valuation targets, the richest man in the world will become even richer.

2021 was an eventful year for Musk, marked by a host appearance on Saturday Night Live, a breakup with his girlfriend Grimes, and his self-crowning as Tesla’s ‘Technoking’.

Musk caused quite a stir last month when he sold many billions of his Tesla shares in a move allegedly dictated by a poll he posted on Twitter.

Tesla’s rising share price has again been credited by Musk’s growing wealth. Tesla delivered more than 936,000 vehicles last year, a record number representing an 87 percent increase over its 2020 delivery count. Pictured: A Tesla factory in China (file photo)

In reality, at least some of the stock sales were driven by mandatory taxes, as you exercised the stock options that expire in August.

He has sold $ 16.4 billion worth of stock since early November, when he said he would sell 10 percent of his Tesla shares if Twitter users agreed, which they did.

But Musk in September had laid out a pre-set plan for stock sales related to options that expire next year, and Tesla in a presentation Tuesday said the program was complete.

Musk said last week that he would stop selling shares after his scheduled sales ended, which means the sell-off is now complete.

Final transactions, reported Tuesday, included the exercise of an option on 1.6 million shares and the sale of 934,090 of those shares to pay taxes.

In all, Musk sold 15.7 million Tesla shares at the end of this year, roughly the 10 percent stake the billionaire had pledged to sell.

He exercised options granted in 2012 to buy nearly 23 million shares at $ 6.24 each, a fraction of Tesla’s share price, which stood at $ 1,069.33 at the end of the day on Thursday, the last session. deal of the year.

Tesla delivers a record 936,172 electric cars in 2021 despite supply chain problems

Tesla delivered more than 936,000 vehicles last year, a record number representing an 87 percent increase from its 2020 delivery count despite a series of hurdles the electric car maker faced over the past year.

The Austin, Texas-based company announced fourth-quarter production and delivery results Sunday, just days after recalling nearly half a million Model 3 and Model S cars to address issues that increase the risk of crashes.

And last February, Tesla told workers it would temporarily halt some production at its California car assembly plant as it faced a semiconductor shortage.

Workers on a Model 3 sedan production line in Fremont were told their line would be idle from February 22 to March 7, a person familiar with the matter told Bloomberg News.

Despite the challenges Elon Musk’s electric car empire faced over the past year, including chip shortages and whistleblower scandals, the demand for sleek, futuristic cars has only grown.

The number of cars delivered last year dwarfs the company’s figures since late 2020, when 499,550 vehicles were shipped to customers.

Of sales made last year, Tesla Model 3 and Model Y vehicles accounted for 911,208, or 97 percent, of the 936,172 vehicles delivered. Its cheaper Model 3 sedan retails for $ 46,490 and up, while the Model Y midsize SUV has a starting price of around $ 61,000.

It delivered 24,964 of its most expensive Model S and Model X vehicles; Its only full-size SUV, the Model X is priced at $ 110,000, while the flagship Model S costs about $ 100,000.

Tesla in 2020 delivered 57,039 of its Model S and X vehicles in 2020, and 442,511 Model 3 and Model Y cars.

It delivered 112,000 vehicles in 2019.

Wedbush Securities analyst Daniel Ives said the latest figures are “staggering” given the current global chip shortage affecting the auto industry.

Ives said the increase in production was likely driven by growing demand from car buyers in China, as well as increased enthusiasm for electric vehicles.

Musk also weighed in on the achievement, tweeting: ‘Great job from the Tesla team around the world!’

Tesla’s branding took some hit last year, most recently last week when it recalled 356,309 Model 3 vehicles built between 2017 and 2020 due to backup camera issues and 119,009 Model S vehicles due to rear view camera issues. front trunk.

Tesla warned that for specific Model 3 vehicles, opening and closing the trunk could damage the harness that connects the rearview camera, causing the camera to suddenly fail.

And the Model S issue could prevent the front trunk from snagging, allowing it to turn upward while the vehicle is in motion.

According to Tesla, only about one percent of Model 3 cars have the defect, compared to 14% of Model S vehicles.

Shares of Tesla have fallen from their all-time highs, reached two days before Musk’s infamous Twitter poll, but they are still on track to end the year 54 percent higher since Jan. 1.

The company has come under fire this week after it announced it had opened a showroom in Xinjiang.

The move has drawn criticism from US trade and rights groups, making it the latest foreign company caught up in tensions related to China’s far western region.

Xinjiang has become a major point of conflict between Western governments and China in recent years, as UN experts and human rights groups estimate that more than a million people, mainly Uighurs and members of other Muslim minorities, they have been detained in camps there.

China has rejected allegations of forced labor or any other abuse there, saying that the camps provide vocational training and that companies must abide by their policies there.

The US electric car maker announced the opening of the showroom in Xinjiang regional capital Urumqi on its official Weibo account last Friday. “On the last day of 2021 we met in Xinjiang,” it read in the post.

On Tuesday, the Council on American-Islamic Relations, the United States’ largest Muslim advocacy organization, criticized the move, saying Tesla was “supporting genocide.”

The United States has called China’s treatment of ethnic Uighurs and other Muslims in Xinjiang genocide. The United States and some other countries plan a diplomatic boycott of the Beijing Winter Olympics in February on the issue.

“Elon Musk must close the Tesla showroom in Xinjiang,” the Council on American-Islamic Relations said on its official Twitter account in reference to the founder of Tesla.

Similar criticism came from an American trade group, the Alliance for American Manufacturing.

Tesla did not immediately respond to a request for comment. The automaker operates a factory in Shanghai and is increasing production there amid rising sales in China.

A large number of foreign companies in recent months have been affected by the tensions between the West and China over Xinjiang, as they try to balance the western pressure with the importance of China as a market and supply base.

In July, Swedish fashion retailer H&M reported a 23% drop in local currency sales in China for its March-May quarter after it was hit by a consumer boycott in March for publicly stating that it was not sourcing products. from Xinjiang.

Last month, US chipmaker Intel faced similar calls after telling its suppliers not to source products or labor from Xinjiang, prompting it to apologize for “the trouble caused to our respected customers, partners and Chinese public “.

Although some have been trying to reduce their supply chain exposure to the region, especially as Washington bans imports such as Xinjiang cotton or blacklists Chinese companies that it says have aided Beijing’s policy. there, many foreign brands operate stores there.

Tesla has also come under the scrutiny of NHTSA’s automatic regulator, which is investigating its autopilot system for safety concerns.


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