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With Elon Musk’s disclosure that he bought a chunk of Twitter Inc shares, the social media giant saw the biggest rally in its shares since 2013, also benefiting the Nasdaq 100, S&P 500, and Russell 2000.
Tesla Inc. also boosted sentiment with shares rising 5.6% after the company posted record deliveries over the weekend, suggesting that the company will be able to survive a series of interruptions.
Stock Index Stats
As social media exchange-traded funds gained more than 5%, the tech-heavy Nasdaq 100 Stock Index rose 2%. Facebook parent Meta Platforms Inc. was among the big gainers. Snap Inc. rose 5.2%, while Pinterest gained 10%. Twitter closed at $49.97, up 27%, as Musk gained 9.2% of its shares.
Brokerage firm BTIG pointed out that cyclical shocks link to the state of the U.S. economy as banks, homebuilders, and transports, face challenges against the broader stock market, raising doubts about sustainability.
Elon Musk’s 5 Best Investments
The wealth of Elon Musk comes primarily from companies that he founded, but passive investments also have contributed to his fortune. Here are Musk’s five top investments:
A year after he co-founded X.com, Musk merged it with Confinity to form PayPal in 2001. Which was then bought by eBay for $1.5 billion on October 3, 2002, at which point Musk owned 11.7% shares of PayPal, making him the largest shareholder.
PayPal got sold in 2009, and Musk invested in SpaceX, Tesla, and SolarCity from the proceeds of that sale.
Space Exploration Technologies Corp., also known as SpaceX, was founded in 2002 by Elon Musk to revolutionize space technology and carry people to Mars and other planets. SpaceX launched the first private rocket into space using liquid aviation in 2008, and it did so with the Dragon spacecraft in 2010.
Founded in late 2010, DeepMind Technologies Musk invested in the company through Angel Investors. In January 2014, Google announced it had acquired the company for an undisclosed sum.
Musk is famed for his worry that AI will eventually replace humans. He reportedly invested in DeepMind not to make money but to follow the fast-paced development of AI technology.
In 2004, Musk invested in Tesla, but he was not the founder. In 2008, Musk became its CEO while continuing to run SpaceX. Tesla first offered its stock to the public on June 28, 2010, on Nasdaq for $17 per share. By March 7, 2022, Tesla shares would have reached over $800 per share.
He holds 177 million shares, worth approximately $142.3 billion, as of December 28, 2021. Elon Musk is the largest shareholder and has significant control over the long-term plan and operations of the company.
The Boring Company
Musk founded The Boring Company in 2017, a company dedicated to tunnel and infrastructure construction. This company was founded to solve traffic woes on the premise that people should not have to travel above ground since miles of the earth are underneath roadways.
A proposal from The Boring Company worth $48.6 million to build an underground tunnel, called the LVCC Loop, that travels below the Las Vegas Convention Center and features three stations and a pedestrian tunnel was approved by the Las Vegas Convention & Visitors Authority in March 2019.
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