The wealth of Elon Musk, entrepreneur and chairman of Tesla Motors Inc (NASDAQ:TSLA) and SolarCity Corp (NASDAQ:SCTY) increased by $2.9 billion as the stock price of the two companies have been performing well.
Stock Value Of Tesla Motors
The stock value of Tesla Motors Inc (NASDAQ:TSLA) surged by more than 180 percent. Over a 52-week range, shares increased from their lowest level of $25.52 to their highest price at $105.40 per share. Shares of Tesla are up by more than 7 percent to $104.35 per share on Tuesday around 2:17 PM in New York.
For the first three months of fiscal 2013, Tesla Motors Inc (NASDAQ:TSLA) posted its first profit of $0.12 earnings per share on $562 million revenue. The company beat $0.03 earnings per share and $493 million revenue estimates of analysts, which drove the stock value even higher. Since its outstanding financial performance, the stock continues to trade upward and receives positive reviews from analysts although not everyone is bullish on the stock.
On the other hand, the stock value of SolarCity Corp (NASDAQ:SCTY) climbed from its lowest price of $9.20 to its highest level at $52.77 per share over the same 52-week range. The company offered its stock for $8 per share during its initial public offering (IPO) last December. SolarCity’s closing price of $48.78 per share on Friday is six times its offering price. The stock is trading around $45.25 per share, down by more than 7 percent on Tuesday afternoon.
Musk The Largest Shareholder of Tesla Motors
Musk is the largest shareholder of Tesla Motors Inc (NASDAQ:TSLA) and SolarCity Corp (NASDAQ:SCTY). He owns 33.1 million shares of Tesla with approximately $3.24 billion market value, and 20.8 million shares of SolarCity worth around $1.02 billion. The previous amount of his stock holdings in Tesla was $2.1 billion and his stake in SolarCity was $767 million at the start of 2013.
Earlier this month, Bloomberg estimated that Musk’s net worth doubled this year to around $4.8 billion. The billionaire entrepreneur previously stated, “Things move in cycles. What really matters is whether it is an upward or downward sloping sine wave over time.”
Aside from Tesla Motors Inc (NASDAQ:TSLA) and SolarCity Corp (NASDAQ:SCTY), Musk has large investments in Space Exploration Technologies (SpaceX), a commercial space exploration company which he founded and serves as CEO. The company designs, manufactures, and launches advanced rockets and spacecraft.
Musk also co-founded PayPal, an online payment service, which was acquired by eBay Inc (NASDAQ:EBAY) in 2002. He also established a software company called Zip2, and sold it to Compaq Computer in 1999. He invested some of the proceeds from the two companies to launch SpaceX. Back in 2003, Musk said, “I like to be involved in things that change the world. The Internet did, and space will probably be more responsible for changing the world than anything else. If humanity can expand beyond Earth, obviously that’s where the future is.”
Meanwhile, a report from Venture Beat cited that Tesla Motors Inc (NASDAQ:TSLA) plans to release a low-priced, entry level car for the average American consumers to compete with Nissan’s Leaf, the cheapest electric car available in the market. The market capitalization of the company at around $12 billion is now almost 25 percent of General Motors Company (NYSE:GM) with approximately $48 billion market cap.