Elon Musk became the third-richest person in the world on Monday, overtaking Facebook founder Mark Zuckerberg, after a split in Tesla’s stock sent its share price soaring.
Mr Musk is now worth $115 billion (Dh422bn), overtaking Mr Zuckerberg's net worth of $111bn, according to the Bloomberg Billionaires Index.
Last month, Mr Musk became a centibillionaire after stocks rallied following news that the Federal Reserve is likely to keep short-term interest rates near zero for at least five years.
His net worth has increased by $87.8bn so far this year, boosted by the rising value of his electric car company, which has soared by more than 500 per cent since the beginning of the year.
Tesla shares jumped by more than 12 per cent following a five-for-one stock split by the company on Monday, and are up a further 7 per cent in pre-market trading on Tuesday.
The electric car maker now has a market capitalisation of $464bn, more than double the $182bn valuation attached to the next-highest valued automotive company, Toyota. The Japanese company sold 10.7 million cars in 2019, compared to Tesla’s 367,500, although Tesla has made significant investments in other areas such as self-driving technology.
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Billionaires: The Top 10 richest people in the world
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Theoretically, stock splits should not alter a company’s valuation – increasing the number of shares reduces the price at which they trade, but makes no fundamental difference to its operations.
However, a lower share price makes it easier for retail investors to buy and “gives a psychological boost to the market”, analyst Craig Irwin of Roth Capital told CNBC on Tuesday.
“It brings momentum and liquidity into the [the company’s shares] in a greater velocity. There’s no denying it – the velocity in Tesla is straight up and this adds more rocket fuel to that rocket,” he said.
Following Monday's stock split, Daniel Ives, an analyst at Wedbush Securities, set a price target of $380 on Tesla’s stock, with a Neutral rating. It closed on Monday at $498.32
“We believe the stock split decision was a smart move by Tesla and its board given the parabolic move in shares over the past six months,” he said in a note to clients.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Under 19 Cricket World Cup, Asia Qualifier
Fixtures
Friday, April 12, Malaysia v UAE
Saturday, April 13, UAE v Nepal
Monday, April 15, UAE v Kuwait
Tuesday, April 16, UAE v Singapore
Thursday, April 18, UAE v Oman
UAE squad
Aryan Lakra (captain), Aaron Benjamin, Akasha Mohammed, Alishan Sharafu, Anand Kumar, Ansh Tandon, Ashwanth Valthapa, Karthik Meiyappan, Mohammed Faraazuddin, Rishab Mukherjee, Niel Lobo, Osama Hassan, Vritya Aravind, Wasi Shah
FA CUP FINAL
Manchester City 6
(D Silva 26', Sterling 38', 81', 87', De Bruyne 61', Jesus 68')
Watford 0
Man of the match: Bernardo Silva (Manchester City)
UAE currency: the story behind the money in your pockets
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
ENGLAND SQUAD
Eoin Morgan (captain), Moeen Ali, Jonny Bairstow, Sam Billings, Jos Buttler, Tom Curran, Alex Hales, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, David Willey, Chris Woakes, Mark Wood
Sholto Byrnes on Myanmar politics
More from Rashmee Roshan Lall
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
