Tesla’s stock performance in 2024 was a remarkable turnaround from the previous year’s decline. This resurgence significantly impacted Elon Musk’s wealth and benefited investors tied to the S&P 500. This analysis explores the extent of these gains and the potential influence of the 2024 election.
Table Content:
From Election Day to Billions: A Timeline of Tesla’s Stock Performance
In 2022, Tesla stock plummeted 65%, resulting in substantial losses for investors. However, 2023 saw a dramatic reversal, with the stock more than doubling in value. This upward trajectory continued into 2024, with a 62.5% increase adding $506 billion to Tesla’s market capitalization.
The most significant beneficiary of this surge was Elon Musk, Tesla’s CEO and largest shareholder. Musk’s stake in Tesla grew by an astounding $111 billion in 2024. Intriguingly, a significant portion of this gain, approximately $109 billion, occurred after the 2024 Election Day. This period coincided with Musk’s increased association with then President-elect Donald Trump and his self-proclaimed status as Trump’s “first buddy.”
While it’s impossible to definitively attribute Tesla’s post-election stock surge solely to Trump’s victory and Musk’s subsequent elevated public profile, it’s reasonable to assume these factors played a role.
Beyond Tesla: Musk’s Expanding Wealth Portfolio
Although Musk’s Tesla gains were substantial, they represented only about 55% of his total wealth increase in 2024. According to the Bloomberg Billionaires Index, Musk’s net worth soared from $229 billion at the end of 2023 to $432 billion by the close of 2024. This significant increase reflects the rising value of his other ventures, including SpaceX, xAI, and The Boring Company.
The Ripple Effect: Tesla’s Impact on S&P 500 Investors
Tesla’s success wasn’t limited to Musk. Investors with holdings in the S&P 500 index also benefited. According to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, S&P 500 investors gained $87 billion from Tesla’s 2024 performance, out of a total $395 billion gain distributed to investors other than Musk.
The S&P 500 experienced a remarkable total return of 25.02% in 2024, including price appreciation and reinvested dividends. Silverblatt calculated that a hypothetical $10,000 investment in the S&P 500 at the start of 2024 would have grown to $12,502.26 by year-end, with $67.90 of that increase directly attributable to Tesla.
Conclusion: A Year of Triumph for Tesla and its Investors
2024 marked a year of exceptional growth for Tesla, generating substantial wealth for Elon Musk and providing significant returns for investors in the broader market. While the exact correlation between the election and Tesla’s stock performance remains open to interpretation, the company’s overall success is undeniable. The 2024 surge solidified Tesla’s position as a major player in the market and underscored the potential for significant gains in a well-performing stock.
