Elon Musk’s net worth jumped by $96 billion in a day, solidifying his position as the wealthiest person in the world, as Space Exploration Technologies Corp. (NASDAQ:SPCX) and Tesla (NASDAQ:TSLA) stocks rebounded.
Elon Musk’s Net Worth is Rebounding Again
Bloomberg data shows that Musk has a net worth of over $817 billion, up by $198 billion from where he started the year. This makes him much richer than Larry Page, Jeff Bezos and Michael Dell, combined.
Musk’s wealth jumped after SpaceX had the best day since its IPO in June. It jumped by over 10% on Friday as investors reacted to its first earnings as a publicly-traded company and after the lock-up period for its employees happened.
Top analysts tracking the company have a bullish outlook. Benzinga data shows that the consensus target among analysts is $229, up by nearly 100% from where it is today. 37 of the 39 analysts tracking the company have a buy rating, with only two – CFRA and Philip Securities – having a sell rating.
Douglas Harned, a Bernstein analyst, hiked the target to $248, while Cantor Fitzgerald maintained the outlook to $246. Other analysts with a bullish outlook on the company are from companies like Royal Bank of Canada, William Blair, and Philip Securities.
SpaceX Published Strong Financial Results
SpaceX published strong financial results this week. Its revenue jumped by 92% to $7.8 billion, with connectivity being its biggest business with over $4.2 billion in revenue. Its AI and space businesses made $2.5 billion and $962 million, respectively.
The main challenge, however, is that the company continued its capital expenditure. It spent$15 billion in its AI business, and $1.36 billion and $1.17 billion in its connectivity and space businesses, respectively. On the positive side, it ended the quarter with over $100 billion in cash and short-term investments,
Analysts are optimistic that its business will continue growing in the near future. The average estimate is that the revenue will jump to $44 billion this year and $90 billion next year, helped by Starlink and its data center business.
Tesla, on the other hand, remains under pressure as competition in the EV industry intensifies and as its capital expenditures continue rising.
The next main factor that may affect Elon Musk’s wealth is the rumored plans to merge SpaceX and Tesla. A report, which the company denied, said that Musk was preparing to sell its Chinese business to clear the war for the deal.
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