Tesla shares (NASDAQ:TSLA) soared to their highest level in over six months on Wednesday, signifying a significant recovery from the company’s difficulties in 2022. The TSLA stock surge has propelled CEO Elon Musk’s fortune to new heights, making him the richest person on the planet by net worth once more.
During early trading, Tesla’s stock rallied by over 3% to reach $229, boosted in part by positive news such as the federal government confirming Tesla’s eligibility for a $7,500 tax credit for its best-selling vehicles, as well as the Mongolian government’s apparent willingness to host a Tesla battery facility. As of Wednesday’s close, Tesla shares were trading at $224.57 per share, enabling the EV maker to reach a market cap of $711.78 billion.
After hitting a low point in early January, the company’s shares have seen a remarkable ~107% increase, partly due to the company’s notable efforts to expand its consumer base. Tesla’s stock performance has allowed the EV maker to become one of the best performers in the S&P 500. For context, the S&P 500 has risen by 12% year-to-date.
Amidst TSLA stock’s rally, Elon Musk regained the top position among the world’s wealthiest individuals by net worth, surpassing LVMH chairman Bernard Arnault. As of Wednesday, Musk’s net worth is listed as $205 billion in the Bloomberg Billionaires Index, while Arnault’s net worth is estimated at $187 billion.
That being said, Tesla shares are still trading about 44% lower than their peak of $410 in November 2021, as reported by Forbes. This suggests that the company still has ground to cover before it fully recovers its losses from 2022.
Tesla stock saw a 65% decline in 2022, partly due to Covid-related lockdowns in China and Elon Musk’s turbulent acquisition of Twitter. However, the EV maker managed to regain some of Wall Street’s confidence by reporting record-breaking quarterly revenue and earnings in January. This positive momentum continued with Tesla’s Q1 2023 results, which were also particularly impressive.
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