According to The Bloomberg Billionaire Index, Elon Musk is worth more than Warren Buffet after Tesla stock hit an all-time high on Friday. Elon Musk is now worth $70.5 billion, $1 billion more than Warren Buffet.
The Daily Mail reported yesterday that shares were up 14% Monday morning bringing Tesla’s market value up to $325 billion and the 10th largest US stock by market value. But by the end of the day, the company’s share went down more than 3%.
This jump in market value has made Tesla worth more than Toyota, Volkswagen, and Hyundai combined. Yahoo Finance reports that Wall Street analysts are trying to make sense of the surge on Monday. Some have pointed to Tesla’s focus on improving batteries and that the company will start selling their cars in India.
Tesla is projected to release quarter earnings on July 22nd. This is important because if the report shows a profit, then it would be Tesla’s fourth consecutive quarter with earnings which is the final quarter needed to be included in the S&P 500 Index which tracks the stocks of 500 large cap US companies.
But some analysts are worried that Tesla’s boost in profit is a result from anticipation of being included in the S&P 500.
The Observer quotes Larry McDonald, an editor for The Bear Traps Report, who wrote that, “by buying up Tesla [stock] now, front-runners are forcing the S&P Indexes to give the stock a higher and higher weighting. Thus, ETFs / Indexes will be forced to pay up, buying even more shares. Then the hot money exits, leaving indexes holding the bag.”
All in all, we will see what happens with Tesla’s stock on July 22nd. It would be awesome to see if they end up on the S&P 500 Index.