Elon Musk Makes Aliko Dangote’s Net Worth In One Day, As Nigerian Billionaire Loses N105.33bn

Surge in demand for Tesla shares on Tuesday made the Chief Executive Officer of the company, Elon Musk, richer, while Aliko Dangote, a cement and sugar businessman in Nigeria, lost part of his wealth.

Value of the automaker appreciated by 9.4% at the end of trading hours in the United States. The growth gave Musk N6.10 trillion ($14.5 billion) in one day, raising his networth to $228.4 billion, according to Forbes Billionaire estimates.

Tesla share closed at $711.11, against the previous day’s $650.28 per stock.

Dangote wasn’t so lucky, as he lost N105.33 billion ($251 million) on the same day, leading to a -1.78% drop in the wealth of the richest man in Africa. He is now worth $13.9 billion.

The hike in Tesla share comes after Musk’s comment about demand surpassing supply, which the billionaire said is being resolved by increase in production of the electric vehicles. He had also downplayed competition eating into the firm’s revenue share.

The statement regarding demand outshooting supply reflects an impending positive growth for Tesla’s earnings, and this boosted the capital market’s confidence in the company’s future growth.

Despite Musk stating that the company was having supply constraints during an interview with Bloomberg at the Qatar Economic Forum on Tuesday, the fact that demand for vehicles from its plants are rising was more exciting, leading to shareholders holding on to their stake.

Increase in earnings means that Tesla’s dividend payout could rise in the second quarter or going into Q3, and in order to benefit from the growth, prospective investors are also buying the firm’s share.

Year-to-date, Tesla’s share is down 40.73% following sell off among shareholders reacting to the soaring inflation rate in the United States, and increased interest on loans in the country.