Tesla Inc. founder and CEO Elon Musk’s wealth increased by $33.5 billion on Thursday. The world’s richest man got wealthy after the shares of his electric vehicle company Tesla went up by 22 per cent to $260.48, swelling his pocket to nearly $270 billion, according to Bloomberg. The shares were up by nearly 5 per cent on a year-to-date basis on Nasdaq.
The surge in the share price is a result of the significant increase in profit of the company in the third quarter's results. According to the company’s statement on Wednesday, the EV maker earned $2.2 billion in July to September compared to $1.9 billion in the same quarter last year. The sales went up from $23.4 billion in Q3 last year to $25.2 billion in Q3 2024.
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But sales of vehicles aren’t the only source that contributed to the increase in earnings. Sales of storage batteries used by businesses and homeowners went by 52 per cent in Q3 compared to the same period a year ago. The company’s profits increased by 29 per cent from services, including charging of batteries. Tesla added $739 million by selling regulatory credits to other automakers.
After performing strongly in Q3, Musk in an earnings call said the company will launch new models of electric vehicles in the first half of 2025, which is likely to increase sales by 20 to 30 per cent.
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“Preparations remain underway for our offering of new vehicles- including more affordable models – which we will begin launching in the first half of 2025,” said the company in a statement on October 23.
Tesla added $739 million by selling regulatory credits to other automakers.
After performing strongly in Q3, Musk in an earnings call said the company will launch new models of electric vehicles in the first half of 2025, which is likely to increase sales by 20 to 30 per cent.
“Preparations remain underway for our offering of new vehicles- including more affordable models – which we will begin launching in the first half of 2025,” said the company in a statement on October 23.
Musk’s aim to increase sales is likely to be fulfilled if Donald Trump, the Republican party’s Presidential candidate for upcoming 2024 US elections, comes to power. Additionally, Trump has been advocating for US automakers in his campaigns. He said his government will focus on making the US an auto hub.
“Why the hell would we give them taxes if they manufacture the car in China, Japan or lots of other places that stole our business over the years,” said Trump in a campaign.
He also said tax breaks will be provided for purchasing cars but only to those manufactured in the US.
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