Tesla CEO Elon Musk got richer overnight after the announced stock split took place on August 31. At the market close on Monday, Tesla and SpaceX owner’s wealth skyrocketed by $10 billion, lifting Elon Musk’s net worth to $102.9 billion. Elon Musk saw a meteoric rise in his wealth after Tesla announced a stock split. A stock split is when a company increases the number of shares in the market by dividing the existing shares of its stock into multiple new shares. Corporations use this strategy to boost their stock’s liquidity and reduce the price of individual shares. This will make Tesla shares more affordable for smaller investors. The current 5-for-1 stock split means that each Tesla stockholder will receive a dividend of four additional shares. Notably, before the split, the price of Tesla stock rose above $2,200 per share while right after the procedure it dropped to $450. The decision about stock split is beneficial both for potential shareholders and for the company itself. On Tuesday, September 1, Tesla stock rose by 12.57% to trade at $498.32 per share. Earlier this year, the shares of the tech giant soared amid the COVID-19 crisis. In early June 2020, Tesla stock jumped above $1,000 per share and in late August crossed the mark of $2,000. So, on August 31, Elon Musk saw the biggest increase in his capital among the world’s billionaires. Amazon owner Jeff Bezos came second in the ranking, adding $4.6 billion to his wealth. Jeff Bezos’s ex-wife MacKenzie Scott ranks third with a $1.6 billion rise in her net worth.
