Elon Musk Soars Past Warren Buffett on Billionaires Ranking
Tesla CEO Elon Musk just zoomed past Warren Buffett on the Bloomberg Billionaires Index to become the world’s seventh wealthiest person.
Musk’s fortune rose more than $6 billion Friday, according to Bloomberg, after Tesla’s stock surged 10.8% to a record $1,544 per share. Its market value stood at $286.5 billion.
Musk owns 20.8% of Tesla’s stock, making his stake worth just under $60 billion. Musk is also the primary shareholder of privately held SpaceX, as well as a privately held tunneling company.
Buffett’s fortune dropped earlier this week when he donated $2.9 billion in Berkshire Hathaway stock to charity. The 89-year-old has given away more than $37 billion of Berkshire shares since 2006.
Shares of the electric-car maker have risen 269% this year. The company’s booming valuation helped Musk land a $595 million payday earlier this year, making him the highest-paid CEO in the U.S.
Musk is the latest tech entrepreneur to rise above Buffett in the ranks of the world’s richest. Steve Ballmer, the former Microsoft Corp. CEO, and Google’s co-founders Larry Page and Brin also have leapfrogged the Oracle of Omaha. And Indian tycoon Mukesh Ambani surpassed Buffett this week.
Mike Novogratz, the longtime money manager who now runs digital currency investor Galaxy Digital Holdings Ltd., warned that valuations of technology companies are getting way too high and that small investors should get out of the market before it crashes.
“We are in irrational exuberance — this is a bubble,” he said Friday in a Bloomberg Television interview. “The economy is grinding, slowing down, we’re lurching in and out of Covid, yet the tech market makes new highs every day. That’s a classic speculative bubble.”