How Much Stock of Tesla Does Elon Musk Own?
Elon Musk is well known for his involvement in Tesla and its subsequent success, with the car manufacturer having vast public support. His business acumen and his successes as CEO of Tesla were so great that he was brought to the forefront of popular culture, and eventually, the public mind. The public has wondered since then—how much stock of Tesla does Elon Musk actually own?
According to Tesla’s latest proxy statement in 2018, for the annual meeting, Elon Musk (or entities related to him) owned 33,880,280 shares, worth $11.5 billion. It is easy to see why Musk has so much faith in Tesla and its technology, based on his investment of time and money in the firm. Because of his vast stake in Tesla, Musk has a 16% total voting power in the firm, which has lead to it being referred to as his “baby.” Although investor confidence in the car company remains high, Musk’s physical assets are what is driving the company forward into a greener, more innovative automotive future.
What is interesting is that, according to researchers, Musk only receives a portion of his total pay from his direct investments in Tesla. His real wealth comes from the stock market investments that were made while he was running the firm. From a research standpoint, Musk’s stock holdings are the “core of his fortune.” This kind of accumulation of wealth is not just exclusive to Tesla—other firms such as Microsoft and Apple, who have given Musk wealth, also show how his investments and strategies have paid off. Some experts have found his strategies to be so successful that they have dubbed it the “Elon Model.”
Since his involvement with Tesla eleven years ago, it looks to be one of many investments that he has made, and for good reason. Musk has proven himself to be a leading car manufacturer and continues to influence the entire automotive industry. This is highly attributed to the fact that his stocks remain a large, and integral, portion of the Tesla company. His direct stocks, indirect stocks, and voting power gives Tesla and himself a huge, influential stake in the market.
Tesla’s Stock Performance
When Elon Musk took charge of Tesla, the market value was at $57.90. Now, it is approaching $165. This can clearly be attributed to his dynamic management style, which inspires investors and colleagues alike. Tesla is now one of the most successful companies out there, with its stock prices setting records each day. The stock is the talk of the town, with investors flocking to buy the stock.
Tesla’s stock performance is extremely impressive, with year-to-date returns of over 289.1%, surprising even the most optimistic investors. Analyzing Tesla’s stock performance, we can see that the stock returned close to 234% in 2020 itself. The stock continues to remain strong, and as per the company’s press release, the stock is projected to keep increasing. This is in line with the broader market trend, with the annual return averaging around 40%.
It is evident that the success of Tesla does not rest solely on Musk’s shoulders, but it can certainly be his work has been instrumental in fostering growth from the very outset, and it is evident from the returns that the stock has given Musk and the Tesla followers. Tesla continues to operate under Musk’s vision, and his strong vision has continued to propel the company.
Effect of Elon Musk’s Influence on Tesla’s Stock
Musk plays an important role in the company, both as its visionary and chief executive. His public persona and involvement in the industry has pushed the Tesla stock to skyrocket and subsequently attract widespread attention. The investors who purchased after his backing have earned gargantuan revenues due to the appreciation in value of the company’s stock.
For instance, when Tesla’s Model 3 was launched in July 2017, Elon Musk’s intentions to revolutionize the industry became widely known, and Tesla’s stock gained immense traction. This led to a surge of over 25% in the stock, pushing the market value to over $59 billion, an increase of $12 billion in a matter of days.
It is surely no coincidence that Tesla has gained much of its buzz from Musk’s involvement and strong backing of the company. Notorious for his long-term vision, Musk’s enthusiasm for Tesla has spurred investors to allocate funds to the company. This added liquidity, coupled with the low volatility of the stock, has induced many to flock to the stock.
Impact of Elon Musk’s Involvement on Tesla’s Other Ventures
Elon Musk’s involvement with Tesla has extended well beyond the automotive industry and into other areas as well. Instead of focusing solely on cars and electric vehicles, Elon has sought to challenge traditional conventions by looking towards pushing the boundaries into unexplored areas such as satellite–based internet and electric aircraft.
The success of Tesla’s automobiles has encouraged him to consider a number of other novel ventures. Elon has been known to announce a variety of ventures through social media, such as the much-anticipated “Tesla Space Program”, and most recently, “Cyborg Dragon”, a venture to combine artificial intelligence with the physical drone. Clearly, his involvement in the business, along with his greater vision, has pushed the boundaries of Tesla’s possibilities.
The success of Tesla’s electric vehicles has encouraged Elon to consider a number of novel ventures. His attention towards such areas, along with newer technologies such as AI, robotics, and autonomous driving continue to present a great deal of potential for the future.
Tesla’s collaborations with large automakers such as Porsche and BMW are testament to the success of its venture in the automotive industry. Collectively, the cars produced by Tesla have grown to become the symbol of new age electric vehicles, a legacy which has been inspired by Elon Musk.
Financial Implications of Elon Musk’s Investment in Tesla
It is possible to evaluate the financial implications of Musk’s investments in Tesla based on the current stock performance. As of December 2019, the total market value of Tesla crossed the $100 billion mark. The combination of Elon’s direct holdings and endorsement, alongside the current stock price has made him worth $26.5 billion.
Analyzing the current figures, it can be seen that since July 2019, Tesla has seen a surge of 545.45%, with a market capitalization of more than 200% of what it was when Elon took charge. Tesla’s stock prices have more than doubled within the last few months, providing a handsome return to investors.
The success of Tesla and its stock is mainly attributable to the combination of Elon Musk’s vision and commitment to Tesla. His ownership in the firm and long-term vision has certainly created plenty of opportunities forTesla, and its associated investments.
Policy Implications of Elon Musk’s Investment in Tesla
Musk’s involvement in Tesla has not just been economically beneficial, but it has also created a shift in policy regarding electric vehicles worldwide. Governments around the world are striving to reduce their carbon footprint, and by investing in green technology such as Tesla, value has been added to the industry.
The success of Tesla’s cars and its role as a leader in the electric vehicle industry has encouraged governments to invest heavily in other eco-friendly vehicles. This has enabled a shift in the legislative requirements and has led to an increased focus on investing in renewable energy sources. This is something which Elon Musk has advocated strongly in the past, and his success has added considerable impact to these efforts.
In addition, Musk’s influence in the business has also led to an increased focus on research and development. Tesla and its various backing firms have encouraged several researchers and investors to support the company’s efforts through R&D grants, which has enabled Tesla to drive innovative solutions to the market.
Final Analysis of Elon Musk’s Investment in Tesla
At a glance, it is apparent that Elon Musk’s involvement in Tesla has been beneficial both financially and politically. It has enabled the company to achieve its goals while driving positive policy decisions. As Tesla’s stock continues to grow, it is likely that Musk’s investment would remain of great strategic importance to the firm.
Tesla’s rapid growth is both a testament to the strength of Elon’s vision and faith in himself and in the company. As its market capitalization continues to expand, it is easy to understand why Elon Musk’s stake in Tesla has remained such an integral part of the company’s success.
