Tesla Stock Hits $1.5 Trillion Valuation as Elon Musk Becomes World's Richest Person

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Driven by a surge in its stock price, Tesla's (TSLA, Financials) market value peaked at $1.5 trillion, an all-time high. This milestone has driven CEO Elon Musk's net worth to $486 billion, therefore confirming his ranking as the wealthiest person on Earth.

With reference to Tesla's developments in artificial intelligence and autonomous driving, Wedbush analyst Dan Ives set his price objective for the firm at $515. He described a "bull case" scenario with $650 that may raise Tesla's value to $2.1 trillion. Some experts, however, advised caution and advised investors to think about purchasing Tesla shares during pullbacks given worries about its present value.

Reaching a value of $350 billion, SpaceX, another enterprise headed by Musk, is now the most valuable startup in the world. After increased investor interest following the U.S. presidential electionsa phenomenon known as the "Trump bumpthis success helped TSLA stock reach over 77%. in value

Apart from Tesla and SpaceX, Musk's other endeavorsincluding his artificial intelligence startup xAIhave witnessed expansion. According to Reuters, Musk's company portfolio was further diversified when the Oman Investment Authority just bought a share in xAI.

Still there are legal and regulatory difficulties. Recently ruling against Musk's $101 billion remuneration deal, a Delaware court decided it unjust to shareholders. Tesla intends to appeal the decision. According to The New York Post, the SEC also made a settlement demand pertaining to Musk's purchase of Twitter, now X, which raises questions about his regulatory standard compliance.

Notwithstanding these obstacles, Tesla's exceptional success highlights its leadership in the fields of electric cars and artificial intelligence; depending on governmental changes, future expansion has great possibility.

This article first appeared on GuruFocus.