American businessman Elon Musk’s wealth skyrocketed by $35.9 billion in just one day following a dramatic 22.25% rise in Tesla’s share price, according to the Bloomberg Billionaires Index.
The electric vehicle manufacturer’s market capitalisation hit $876 billion, with shares trading at $271.22 as of 3 p.m. ET on Wednesday. This jump was fuelled by a robust market rally sparked by positive U.S. political developments and improved investor sentiment.
Tesla’s performance outpaced broader market gains on Wednesday, with the S&P 500 climbing 7.2% and the Nasdaq Composite rising 9.7%.
The surge followed President Donald Trump’s announcement of a 90-day pause on reciprocal tariffs for most U.S. trading partners — excluding China — easing trade tensions and boosting investor confidence.
Tesla stood out as a key beneficiary of the rally, with its stock gaining 18.5% by midday — far exceeding broader market growth. Currently, Tesla’s stock is well within its 52-week range of $138.80 to $488.54.
Further energising the stock’s momentum, Benchmark, a prominent analyst firm, upgraded Tesla to one of its top investment picks. While Benchmark reduced its one-year price target from $475 to $350 per share, the firm still projected a potential 44% upside.
Benchmark analysts cited Tesla’s strong product pipeline, including upcoming vehicle launches and its much-anticipated robotaxi initiative, as primary growth drivers. Though cautious about the immediate prospects of robotaxis, they maintained that these innovations could help the company recover from recent sales slowdowns.
Tesla’s current gross margin sits at 17.86%, and trading volume hit 1.32 million shares, slightly above the daily average of 106.8 million shares.
The broader rally was also supported by Trump’s new tariff framework: a 10% universal base tariff on imports from most countries, with a steep increase in tariffs on Chinese goods to 125% from 104%. While the announcement was met with mixed reactions globally, markets responded positively overall.
With a market valuation of $876 billion, Tesla continues to reinforce its dominance in the electric vehicle space and remains positioned to benefit from innovation and evolving consumer trends.
