Elon Musk overtakes Jeff Bezos to become world’s richest person

Last updated Jan 8, 2021

A 6% increase in Tesla (TSLA) shares early Thursday raised the worth of its CEO’s stock holdings and choices by $10 billion, taking his net worth to about $191 billion. A more modest increase of less than 2% raised Bezos’ Amazon (AMZN) shares by about $3 billion, putting his net worth at $187 billion.

Expense Gates is now a remote 3rd at $132 billion, according to Bloomberg.

The Forbes real-time tracker still has Musk and Bezos $18 billion apart since the close of trading Wednesday, after Bezos lost $4.3 billion in the worth of his Amazon (AMZN) stock. Although the more comprehensive market was up greatly Wednesday, Big Tech stocks, consisting of Amazon, fell on issues that Democratic control of the Senate might imply higher examination and policy on the market.

Another gain in Tesla (TSLA) shares Wednesday lifted Musk’s net worth by $4.1 billion to $165.4 billion, according to Forbes’ calculations. But Forbes does not appear to be giving Musk credit for the value of options he received in 2020 to buy an additional 33.6 million shares of Tesla.

Musk is also the primary shareholder and CEO of SpaceX, though SpaceX is privately held, so its value does not fluctuate as much as the value of Tesla.

Bezos’ stake in Amazon shares increased by $75 billion in 2020, to $173.3 billion, given the huge increase in sales driven by the Covid-19 pandemic.

But that was nothing compared to Musk’s holdings in Tesla. The 170 million shares of Tesla he already owns increased in value by $106 billion during 2020, as shares shot up 743% during the course of the year.

The value of his stock options he held at the start of the year increased by $14.2 billion, while the new options he received during the course of the year as part of his pay package had a value of $21.5 billion at year’s end.

Musk caught Gates for the title of the world’s second-richest person in late November, but Tesla shares have increased in value by 45% since then, lifting Musk’s net worth by $53 billion over the past couple months.

Tesla short sellers lost $40 billion in 2020. Elon Musk made more than triple that

Tesla shares are off to a good start in 2021, rising more than $90 a share, or 13%, since the start of this year, consisting of the gains early Thursday. That has raised Musk’s Tesla holdings and options by about $21 billion this year. Meanwhile, Amazon’s stock was down slightly for the year as of late morning Thursday.

Musk is set to qualify for options to buy another 16.9 million shares of Tesla early this year, according to company filings. Those options would be worth $12.3 billion at the shares’ current worth, after taking into account the exercise price.

Bezos does not have any Amazon stock choices, only the 53.2 million shares he has as the company’s founder. He would have had more if he hadn’t given 19.7 million shares to his ex-wife, MacKenzie Scott, in his divorce. Bezos has also sold off or has given away shares as part of his charitable donations. Musk has never disposed of any Tesla shares.

Bezos isn’t the only one that Musk caught up to Thursday. ExxonMobil (XOM), the United States’ most valuable oil company, had a market worth at midday Thursday of just under $191 billion. So Musk, who is a leading advocate of switching drivers around the world from gas and diesel to electric vehicles, is for the time being at least worth more than America’s largest oil business.

Jobber Wiki author Frank Long contributed to this report.

Elon Musk overtakes Jeff Bezos to become world's richest person - CNN INVESTING