Elon Musk, the CEO of Tesla, and the company’s innovative line of products have made Musk one of the most well-known figures in the electric vehicle industry. A significant achievement so far is that it is No. 100 on the Fortune 500 list. For the first time, Tesla made a profit in 2020, and the business has become a Wall Street favorite.
Take a look at this snapshot of Tesla’s current situation, as well as a discussion of the firm’s history, value, and future forecast, to get a sense of how much the company is worth.
Capitalization of Tesla: $956.51B
A company’s market capitalization can be calculated by multiplying the number of outstanding stock shares by the current market price of the company’s stock. However, the use of market capitalization as an evaluation tool has obvious limitations. To begin, market capitalization fluctuates regularly and is directly linked to the current share price of a company’s stock. Neither earnings per share, growth rate, or book value are taken into account in this calculation.
Due to good third-quarter 2021 profits and the revelation that Hertz would purchase 100,000 Tesla automobiles for its rental car network, Tesla’s stock price soared to $1,243.49 last year. In light of these developments, Tesla’s market capitalization surpassed $1 trillion for the first time, making it one of only a few corporations to do so. Tesla’s stock is currently trading at a 35% discount to its 52-week high, reducing the company’s market capitalization to $956.51 billion, although this is not due to a lack of earnings.
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Tesla’s fourth-quarter revenue grew by 65 percent to $17.72 billion, compared to the same period in 2020. According to CNBC, analysts expected sales of $16.57 billion. Earnings per share came in at $2.52, beating analysts’ expectations of $2.36.
After a poll on Twitter, Tesla CEO Elon Musk sold shares in order to pay taxes on stock options he had exercised, which triggered the stock sell-off. It’s likely that Tesla’s stock will continue to rise as long as the company continues to meet its aggressive growth plans, according to Forbes contributor Peter Cohan. Investors should keep in mind, though, that Musk may face another significant tax payment in 2027, according to Cohan.
Elon Musk, JB Straubel, Marc Tarpenning, Ian Wright, and Martin Eberhard are Tesla’s five founders. Originally, the company was founded by Eberhard and Tarpenning, but after Eberhard was forced to resign, the remaining three co-founders were identified following a legal struggle. As of Feb. 9, Elon Musk’s net worth was estimated by Forbes to be $255.1 billion, making him the richest man on the planet.
Is Tesla Worth Money?
You either love or despise Tesla stock. Short sellers continue to gamble that the company will go out of business, which appears implausible at this stage, while dreamers and believers believe that the company will fundamentally change the auto and energy industry. As a result, the stock’s price is expected to continue to fluctuate greatly. Depending on which camp you belong to, you may or may not think Tesla is worth the money.
Regardless matter which stock you choose to invest in, the share price is simply one of the many elements you should take into account. When it comes to investing in stocks, your personal financial condition has a significant impact on whether or not you should invest in a specific stock like Tesla. In order to figure out if stocks are a smart investment for you, you should speak with a fiduciary financial counselor about your goals, risk tolerance, and current financial circumstances.
Tesla’s Top Shareholders
All of Tesla’s top 10 shareholders are asset managers/mutual funds. Only 42.32 percent of Tesla’s shares are owned by institutional and mutual fund investors as a whole. The following is a list of the company’s top shareholders.
- The Vanguard Group, 6.17% of shares
- BlackRock Inc., 5.26% of shares
- Capital World Investors, 3.73% of shares
- Capital Research & Management, 3.77% of shares
- State Street Corporation, 3.11% of shares
- Geode Capital Management LLC, 1.31% of shares
- Baillie Gifford & Co., 1.08% of shares
- Jennison Associates LLC, 1.06% of shares
- Fidelity Management & Research, 0.99% of shares
- Northern Trust Investments Inc., 0.78% of shares
There are no hard and fast rules when it comes to the percentages of these shareholders. These percentages may hold, but if Tesla’s fortunes take a turn for the worse, Wall Street institutions could pull out at any time.
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Tesla CEO Elon Musk Net Worth
According to Forbes Magazine, Elon Musk is the richest person on the planet with a fortune of $219 billion.
He was raised in Pretoria, South Africa, before migrating to Kingston, Ontario, Canada, to attend Queen’s University. Later, Musk attended the University of Pennsylvania before settling in California, where he pursued his entrepreneurial ambitions instead of furthering his academic career, which paid off handsomely.
In 1999, Zip2, his first software company, was acquired for $307 million. When PayPal was sold to eBay in 2002 for $2.5 billion, he was one of the co-founders. The electric vehicle manufacturer Tesla is run by Musk, who is also a shareholder in SpaceX and SpaceX.
Musk bought Twitter for $44 billion in April 2022, and the deal was finalized in May of that year. Musk is the father of eight children from two marriages. X A-12 and Exa Dark Siderael are the names of his two children with Grimes, whom he had two children with.
There have been a few people who have criticized him. Defamation charges were brought against him in 2019 after he referred to a rescuer as a “pedo man” on Twitter after the 2018 Tham Luang cave rescue.