Tesla’s share price has reached an all-time high despite political turmoil in the US and widespread fears that the pandemic has fuelled a fresh technology bubble.
The electric carmaker’s market value reached £774 billion on Friday on the back of a bumper year in which its share price has increased by 729 per cent over the past 12 months. Tesla’s rally has propelled the entrepreneur and co-founder Elon Musk to become the world’s richest person, above Amazon’s chief executive, Jeff Bezos.
There are fears that US companies are in the throes of a bubble similar to the dotcom boom of the 1990s, which was prompted by excessive speculation over internet companies.
Shares in Tesla (TSLA) closed more than 7% higher on Friday night, surging to yet another record high and pushing the company’s market value to over $800bn (£590bn) for the first time ever.
The electric carmarker has rallied more than 800% in the last year and 20% just this year alone, sending chief executive Elon Musk surging past Amazon’s (AMZN) Jeff Bezos to become the world’s richest man, according to Bloomberg’s Billionaire Index.
Bezos’ net worth currently stands at about $186bn while Musk now worth $209bn. The SpaceX chief owns a 21% stake in Tesla which contributes around $175bn to his total net worth.
His growth in fortune over the past year marks the fastest rise to the top of the rich list in history. Musk’s net worth at the beginning of 2020 was around $27bn, placing him just inside the list of the world’s top 50 richest people. Schedule