In what could only be described as a symbolic victory against the fossil fuel industry, Tesla (NASDAQ:TSLA) CEO Elon Musk’s personal net worth has now overtaken the market cap of Exxon Mobil Corp, one of the world’s most prolific oil companies. Musk was able to achieve this unique milestone following TSLA stock’s rally on Monday, which was propelled in part by an order for 100,000 Model 3s from American car rental giant Hertz.
With Tesla’s 12.66% gain on Monday, the EV maker’s market cap ended the day with a valuation of $1.02 trillion. This translated to a $36.2 billion gain in Musk’s net worth, which propelled his total net worth to a whopping $288.6 billion. This latest update made 2021 a very good year for the Tesla CEO so far, as his net worth has increased by $119 billion year-to-date. In comparison, Amazon founder Jeff Bezos, the world’s No.2 billionaire, is currently listed with a net worth of $193 billion.
Elon Musk’s symbolic win against Exxon almost seems like an inevitable milestone as the world continues to embrace sustainable solutions. Electric vehicles today, after all, are more mainstream than ever, with both veteran and young carmakers investing substantial resources in the development of quality electric cars. It would not be an exaggeration to state that the EV market today would not be the way it is without the contributions of Tesla and its vehicles like the original Roadster and the Model S.
This is something that was highlighted by Hertz interim chief executive officer Mark Fields, who noted that ultimately, Teslas are really the only way to effectively democratize the public’s access to electric cars. “How do we democratize access to electric vehicles? That’s a very important part of our strategy. Tesla is the only manufacturer that can produce EVs at scale,” Fields noted.
The Hertz interim chief executive is quite accurate in his statement. Tesla is by far the world’s largest pure EV maker, and while the company is still only producing a fraction of the cars that legacy automakers build every year, its capability to produce electric vehicles at scale has only become more and more formidable over the years. In the third quarter alone, Tesla produced 237,823 vehicles and delivered 241,300. That’s close to half of the cars that the company produced and delivered in all of 2020.
Interestingly enough, Exxon’s stock this year is actually performing very well. Despite being overtaken by Musk at the start of 2021, Exxon has been on a tear, especially as oil and natural gas prices advanced. But even the fossil fuel rally, if it continues, could ultimately help spur the sales of electric vehicles in the long run, according to a Bloomberg report.
Disclaimer: I am long TSLA.
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