Elon Musk the CEO of Tesla is preparing to make an announcement about the newest innovations in the company at an event called “Battery Day” on the 22nd of September, investors have again driven up the electric car maker’s share price and in the process, they added 13 billion dollars into Elon Musk’s net worth in just one week.
Tesla’s stock rose by 19% between September 11 and September 18. The stock made a recovery from the 21% plunge on September 8 when it was unexpectedly not included in the S&P 500 index. Musk tweeted on September 11 that at the Battery Day event “many exciting things” are going to be announced. Analysts are trying to guess what the announcement will be. Adam Jonas, an analyst at Morgan Stanley said one of the announcements might be a huge jump in the capabilities in battery production could change the narrative in the company. Daniel Ives an analyst at Wedbush said that Tesla might bring the cost of production below the $100 kilowatt per hour threshold, this would make the company more profitable. Apart from an increase in battery manufacturing, Ives is also suggested strong sales in China is an area for growth for Tesla and it estimates that consumers in China could represent up to 40% of the market for Tesla by the start of 2022.
Tesla is not the only electric car maker making gains. The co-founder of BYD, the biggest electric car maker in China, Wang Chuanfu added 2.3 billion dollars to his wealth as the stock of the company jumped by 35%. BYD has been on a rampage for the past year as it more than doubled its value after it released a cobalt-free and cheaper battery in January, in July it debuted in their first sedan and in August managed to secure a contract to supply electric buses to the state of California.
Larry Ellison the co-founder of Oracle also made some money this week as he added 4 billion dollars to his wealth after announcing his company will purchase a minority stake in the social media app TikTok pending approval from the US, the app is owned by ByteDance, a company based in China.
Another company that also had a huge week was SoftBank the Japanese investment giant, which announced on September 13 it would sell Arm a British microchip manufacturer to one of its competitors Nvidia for 40 billion dollars. Investors have praised the move which helped the CEO of SoftBank add 3.4 billion dollars to his net worth.