Shortly before Oracle founder and billionaire Larry Ellison joined the board of Tesla in December 2018, he bought three million shares of Tesla for about $1 billion. That stake is now worth more than $1.6 billion thanks to Tesla's rebound that has sent shares soaring as much as 25% higher in 2020 alone. This remarkable turnaround highlights not only the volatility of the stock market but also Ellison's keen sense of timing and investment strategy. For most of 2019, however, Ellison's investment faced significant challenges, with Tesla's stock plummeting nearly 46% before hitting a low of $178 per share in June.
As the year progressed, October marked a turning point for Tesla. The company reported a surprising return to profitability in its third-quarter earnings, much to the delight of investors. This positive news led to a further surge in Tesla's stock prices, which jumped by 17% in after-hours trading. The company’s ability to deliver strong vehicle numbers for 2019 and the opening of its new Gigafactory in Shanghai contributed significantly to this recovery, propelling Tesla to become the highest-valued U.S. automaker ever.
The momentum didn't stop there; Tesla recently broke the $500 per share threshold, with its stock trading as high as $513.49, only slightly below its peak of $543.76. As a result, Ellison's initial $1 billion investment in Elon Musk's electric car company is now worth approximately $1.6 billion. This impressive growth emphasizes the dynamic nature of the tech and automotive industries, where fortunes can change rapidly. Year-to-date, Tesla's stock is up about 25%, while Larry Ellison's net worth continues to soar at around $70 billion.
| Detail | Information |
|---|---|
| Name | Larry Ellison |
| Net Worth | $70 Billion |
| Initial Tesla Investment | $1 Billion |
| Current Value of Investment | $1.6 Billion |
| Stock Price Increase (2020) | 25% |
What You Will Learn
- The timeline of Larry Ellison's investment in Tesla and its growth.
- Factors contributing to Tesla's stock market rebound in 2020.
- The impact of Tesla's Gigafactory in Shanghai on its market value.
- Insights into Larry Ellison's investment strategy and market foresight.
