Elon Musk is now richer than Warren Buffett

SAN FRANCISCO: Elon Musk’s net worth soared past Warren Buffett as the chief executive officer of Tesla became the seventh richest person in the world, according to the Bloomberg Billionaires Index.

Musk’s fortune rose by $6.07 billion to $70.5 billion following a 10.8 percent jump in the electric carmaker’s stock on Friday and a hefty donation by Buffet.

Famous investor and a multibillionaire Buffett’s net worth dropped earlier this week when he donated $2.9 billion in Berkshire Hathaway stock to charity. Since 2006, he has gifted more than $37 billion worth of shares.

Tesla’s shares have surged 500% over the past year as the company increased sales of its Model 3 sedan. The stock is up about 38% since the close on July 1, a day before the company reported its quarterly delivery numbers.

The rally also puts Musk in reach of a payday potentially worth $1.8 billion, his second jackpot from the electric car maker in about two months.

Tesla’s solid delivery numbers heightened expectations of a profitable second quarter, which would mark the first time in its history that it would report four consecutive quarters of profit.

Musk does not take any salary from Tesla, while Buffett has received $100,000 annually for decades. The riches of both men are largely due to the daily ups and downs of equities markets.

He has also said that Tesla stock is likely overvalued but that has not stopped investors from pushing the price hight to make it the most valuable car company.