Musk's net worth soared by $33.5 billion overnight

On October 24, Tesla's stock price hit its best performance in 11 years, and the wealth of Musk, the company's CEO and the world's richest man, also increased by more than $26 billion. On the same day, Tesla's stock price rose 21.92% to $260.48 per share, the biggest one-day rise since 2013, and the market value increased by about $150 billion. The gain erased Tesla's losses for the year, leaving it up 3 percent for 2024, though it still trails the Nasdaq's 22 percent gain. It was also the second biggest gain since the company went public in 2010. As Tesla's boss, Musk is naturally the biggest beneficiary of the stock's surge. According to the latest data from Forbes, Musk's current personal net worth is $269.8 billion, an increase of $26.4 billion on the 24th, an increase of 10.83%.

Tesla's strong rise has broad and profound implications for business. First, the impact of competitive pressure on the automotive industry, Tesla as a leader in the electric vehicle market, the rise in its share price is often seen as the market's optimistic expectations for the prospects of the electric vehicle industry. Tesla's rising stock price and expanding market share have put intense competitive pressure on other automakers. In order to maintain market position in response to Tesla's challenge, these companies have to increase investment in research and development, production, marketing and other aspects to improve product quality and reduce costs. However, this competitive pressure could lead to greater operating difficulties for some of the weaker automakers and may even be forced out of the market. At the same time, Tesla's rising stock price has also attracted more capital into the electric vehicle industry, intensifying competition in the market.

The second is the impact on the energy industry and supply chain, Tesla has also made significant progress in the energy storage business, and its gross margin of energy storage products has been climbing, hitting a record high. This will help promote the popularization and application of energy storage technology and promote the transformation and upgrading of the energy industry. At the same time, Tesla's leading position and strong rise in the field of new energy vehicles have also brought competitive pressure to other new energy companies. In order to maintain market competitiveness, these enterprises may need to increase investment in research and development, production, marketing and other aspects to improve product quality and reduce costs. However, this competitive pressure may lead to some weak new energy enterprises to face greater business difficulties, and may even affect the healthy development of the entire new energy automobile industry. Tesla's rapid development has led to the overall prosperity of the electric vehicle industry chain, but it may also lead to supply chain tensions. As Tesla's sales continue to increase, the demand for key components such as batteries and motors continues to grow, which may lead to greater production pressure on companies in the supply chain. At the same time, in order to meet the needs of high-end customers such as Tesla, enterprises in the supply chain may need to invest more money in technology research and development and quality control, thereby increasing production costs. These costs could eventually be passed on to consumers, leading to higher prices for electric vehicles.

The third is the impact on the stock market and consumers, Tesla's strong rise may make some consumers limited in their choice of electric vehicles. Because of Tesla's brand power and product quality, some consumers may be more inclined to buy Tesla products. However, as the price of Tesla rises, some consumers with limited budgets may not be able to afford the high price of Tesla, thus limiting their range of options. This may result in the sales of other electric vehicles in the market being affected, which in turn affects the competitive landscape of the entire electric vehicle market. At the same time, although Tesla's strong rise may drive up the stocks of consumption and related industrial chains, it may also lead to excessive speculation and bubbles in the stock market. A sharp drop in Tesla's share price could send shockwaves through the entire stock market, triggering panic and selling behavior among investors.

In summary, while Tesla's strong rise has promoted positive developments in electric vehicles, energy, technology and other fields, it may also have some negative effects on the business environment. These effects need to cause the concern of relevant enterprises and investors, and take corresponding measures to deal with and resolve the potential risks.