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Elon Musk's wealth rockets by $15 billion on Tesla's S&P 500 entrance. He's about to become the world's 3rd-richest person.

Nov 17, 2020, 19:26 IST
Business Insider
Mike Blake/Reuters
  • Elon Musk's wealth leapt by $15 billion after Tesla nabbed a spot in the S&P 500 index.
  • The Tesla founder and CEO is set to become the world's third-richest person, overtaking Facebook CEO Mark Zuckerberg.
  • The response to Tesla's inclusion in the exclusive index left Musk with a net worth of about $117 billion on Monday evening, according to the Bloomberg Billionaires Index.
  • Effective late December, his company is set to join other valuable firms such as Apple, Amazon, and Berkshire Hathaway in the index.
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Elon Musk's personal wealth grew by $15 billion on Monday after Tesla got a spot in the S&P 500 index. He is on track to become the world's third-richest person, overtaking Facebook CEO Mark Zuckerberg.

The automaker's share price, which closed at $408.09 on Monday, soared 14% in after-hours trading when Tesla's inclusion in the index was announced.

Musk, who is CEO of both Tesla and SpaceX, saw his net worth swell to $117.5 billion as of Monday evening, according to the Bloomberg Billionaires Index. His overall $90 billion gain this year has been the highest among the entire list of 500 billionaires.

The latest expansion in his wealth means he would overtake Zuckerberg, who has a net worth of $106 billion.

Tesla, with a market capitalization of $400 billion, met requirements to be included in the index and is set to join as one of the 10 most valuable companies on December 21.

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Among the requirements to join the S&P 500, companies must be based in the US, have a market cap of at least $8.2 billion, be highly liquid, have at least half of their shares available to the public, and post four successive profitable quarters.

Musk's company is poised to join other valuable firms such as Apple, Amazon, and Berkshire Hathaway.

S&P Global did not mention which firm Tesla would replace, saying it would announce it in a separate release.

Separately, Musk said over the weekend that he "most likely" had a moderate case of COVID-19 but questioned the reliability over mixed test results he had.

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