RBC “Tesla was completely mistaken” White flag surrender…Musk became the world’s richest man

The global investment bank RBC (Royal Bank of Canada), which had been pessimistic about the electric car Tesla almost to the end, surrendered, saying that it had been completely wrong. As Tesla stock prices surged, Elon Musk became the richest man in the new year.

◇”Totally wrong”…1.5 million units produced by 2025

According to Bloomberg on the 7th (local time), RBC raised Tesla’s rating to BUY on the day and admitted that it was completely wrong about Tesla. RBC recommended the purchase by raising the investment opinion that it insisted on for two years since January 2019 from’lower market rate of return’ to’industrial rate of return’. In the past two years, Tesla shares have jumped 1200%, and RBC eventually admitted a mistake.

RBC analyst Joseph Spark said in an investment report today, “There is no way to say anything more dignified than to say that we are completely wrong about the Tesla stock.” As one of his new resolutions, he said he reevaluated his investment perspective and said it was his biggest mistake to belittle Tesla’s growth. Meanwhile, Tesla’s auto production is expected to increase to 1.3 million to 1.5 million units in 2025, and the target price was raised from $399 to $700. On that day, Tesla’s share price jumped 8% to $816.

Earlier this week, Morgan Stanley analyst Adam Jonas also raised the target price by 50%. He explained that Tesla production in the fourth quarter of last year exceeded expectations and raised 5 billion dollars of new capital as the background for raising the target price.

◇Musk wealth blows 150 billion dollars a year

The soaring stock price has made Musk the richest man in the world, overtaking Amazon’s Jeff Bezos. According to CNBC, Musk had a fortune of $185 billion, overtaking Bezos’ $184 billion. Bezos handed over to Musk the world’s richest man since 2017.

Over the past year, Musk’s fortunes have soared, and in the shortest time in the history of the world’s richest list, it has been ranked first. In the beginning of last year, Musk’s fortune was $27 billion, not even in the world’s 50’s richest people.

But Tesla’s stock price soared more than nine times last year, and Musk’s fortunes skyrocketed. Musk received 12 stock options without paying any salary or cash bonuses from the CEO annual salary contract in 2018. Following the rise of Tesla’s share price, he pledged to go all-in on shareholder profits and company growth by receiving step-by-step options.

Thanks to this, Musk climbed to 7th place in the rich man ranking, overtaking investment sage Warren Buffett in July, and in November, winning second place after defeating Microsoft founder Bill Gates. Musk’s fortune over the past 12 months amounted to $150 billion, well over Bill Gates’ total $132 billion.