Enigmatic Billionaire Elon Musk is the current CEO and product architect for Tesla and has been since 2008 making him the longest-tenured CEO of any automotive manufacturer worldwide as of 2019. As of December 31, 2019 Musk owns 20.8% of all Tesla shares and also has ownership in many different projects.
Tesla’s strong performance in the past few years is what allowed the South African born Engineer to overtake Facebook Founder and CEO Mark Zuckerberg on the Bloomberg Billionaire Index, making him the 3rd richest man on the planet with a net worth of $120B compared to Zuckerburg’s $103B.
Since it was announced that Tesla will be included in the S&P started a hot streak for the company’s stock which is up by more than 490% in 2020. Tesla stock has also traded above the $500 per share mark since the announcement was made briefly reaching its highest price of $607.80 per share (as of writing). This meant Elon Musk’s personal net worth increased by $92.4B in 2020 which is the highest increase among anyone in the list. This puts Musk only behind Amazon’s Jeff Bezos ($183B) and Microsoft’s Bill Gates ($128B).
Tesla’s Strong Record in Recent Years leads to unprecedented inclusion in the S&P 500
The S&P 500 Index or known simply as S&P is one of the most looked out for indexes in the stock market. It measures the stock performance of 500 large companies that are listed in the US stock exchange. For a company to be eligible in the index a company must post four profitable quarters in a row which Tesla accomplished for the first time from July 2019 to June 2020. The announcement was made about Tesla’s inclusion on November 16, 2020, but will not be official until December 21, 2020. Tesla’s imminent inclusion is unprecedented in its nature as Tesla will be the largest company to join the index, immediately becoming the 6th largest company in the index once it becomes official.
Tesla’s Free Cash Flow Up 276% in Q3 2020 Compared to Q3 2019 – $1.395B
Despite the uncertainty caused by COVID-19 Tesla posted impressive numbers regarding their free cash flow for 2020. According to data Tesla’s Free Cash Flow increased by 276% compared to the same period in 2019. Tesla’s Q3 free cash flow also experienced an almost $1 billion increase from Q2 2020.
Free Cash Flow up by 276%, Capital Expenditures also up by 84%
Tesla as a company has been growing rapidly the last few years and COVID-19 seems to have done little to slow down its momentum. In fact, the company has been looking to build on this momentum with new factories set to open in Texas and even internationally in places such as Germany. Such investments have driven up Tesla’s capital expenditures by 84% quarter-on-quarter to surpass $1B in Q3 of 2020. Despite capital expenditures reaching over a $1B for Q3 2020, Tesla still posted an impressive Free Cash Flow of $1.4B for Q3 marking a 234% QoQ increase from Q2 and a 276% YoY increase from 2019. Tesla also recorded a 131% YoY increase in their Net Income numbers from Q 3 2019-2020.