After a short dip in mid-June, the stock market rebounded to reach new records this week after the White House reached an agreement with a bipartisan group senators to pass an infrastructure bill. Tesla’s Elon Musk was its biggest beneficiary.
Musk, who is the third-richest person in the world, saw his fortune increase by $9.9billion, to $165.9billion at the end of the week. The stock of Tesla rose by 9% on Wednesday, and was up 7.8% for this week. Tesla outperformed the main stock indexes by a large margin: The S&P 500 index gained 2.7% and the Dow Jones Industrial Average grew 3.4%.
According to a White House factsheet, the proposed $1.2 trillion infrastructure bill by the Biden administration includes $15 billion for funding a network of 500,000 electric vehicle charging station and electrifying school bus and transit buses across the U.S. Although the proposal does not include rebates to electric car buyers as part of the ambitious spending plan Biden rolledout in March, the compromise still helped boost the stock prices of Tesla and other EV companies such as Fisker Motors and Lordstown Motors.
Tesla’s second quarter delivery figures, which will be published in the first week July, will provide more insight into the company’s growth. The company’s first quarter 185,000 deliveries were more than twice what it reported in 2020. Despite the stock’s recent surge, Tesla stock remains 24% below its January records. This briefly made Musk the richest person in the world. Current No. Musk is third behind Jeff Bezos, Amazon CEO, and Bernard Arnault, French luxury goods tycoon.
Nike founder Phil Knight was the second-largest winner of this week. His fortune increased by $6.4 billion in just one day, Friday. Nike announced blockbuster earnings on Thursday for its quarter, and its fiscal year ending May 31, 2021. The quarter’s revenue of $12.3billion was nearly double that of last year, in the early days after the pandemic. On Friday, the stock rose 15.5% to record heights. According to Forbes estimates, Knight has a net worth now of $56.4 billion.