The Santos Ltd (ASX: STO) share price will be one to watch on Wednesday following the release of a positive announcement after the market close.

What did Santos announce?

This afternoon Santos revealed that Federal Environment Minister Sussan Ley has signed off on the $3.6 billion Narrabri Gas Project.

As a result, it will now embark on a 12 to 18 month appraisal program ahead of a Final Investment Decision (FID) for the next phase of project development.

Pleasingly, Santos’ Managing Director and Chief Executive Officer, Kevin Gallagher, notes that the conditions on the approval were consistent with those already set by the New South Wales Independent Planning Commission.

Furthermore, they were generally in line with those for its GLNG operations, where the company is operating safely and efficiently, and protecting water resources and the environment.

Mr Gallagher commented: “We accept the conditions from the Commonwealth, which are very much in line with our other operations across the country and welcome the approval that all relevant matters of national environmental significance have been adequately addressed.”

“Santos is excited about the prospect of developing the Narrabri Gas Project, a 100 per cent domestic gas project that will deliver the lowest-cost source of gas for NSW customers,” he added.

Mr Gallagher believes the development of the project will be a boost to the economy as it recovers from the COVID-19 pandemic.

The chief executive said: “As the economy recovers from COVID-19, game-changing projects like Narrabri are critical to creating jobs, driving investment, turbo-charging regional development and delivering more competitive energy prices.”

What now?

The company has already begun workover activities on existing wells under its current exploration tenures and is working to get various agreements in place that are required prior to the next phase of development.

“Now all we want to do is to get on with creating jobs in New South Wales and Narrabri, and making a real difference to people’s lives in rural and regional communities,” Mr Gallagher concluded.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why the Oil Search (ASX:OSH) share price is the worst performer today
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Tuesday the MyDeal.com.au Limited (ASX: MYD) share price was a particularly positive performer.

The newly listed online retail marketplace provider’s shares finished the day over 7% higher at $1.29.

This means that the MyDeal share price is now up 29% from its initial public offering (IPO) listing price of $1.00.

What is MyDeal?

MyDeal is an online retail marketplace provider with a focus on furniture, homewares, appliances, technology, baby products, and hardware.

It recently raised $40 million from its IPO, which will be used to drive future growth. This includes growing its private label business, investing in its proprietary technology, and investing in advertising to grow its customer base and brand.

The online retailer has been a positive performer in FY 2021. It recently released a first quarter update which revealed quarterly gross sales growth of 317% to $56.67 million.

This was driven by the accelerating shift to online shopping and a 268% increase in active customers to 669,897 compared to the prior corresponding period.

Can the MyDeal share price go higher?

One broker that still sees a lot of value in MyDeal shares is RBC Capital Markets.

Earlier this month it initiated coverage on the company with a buy rating and $1.60 price target. This price target implies potential upside of 24% over the next 12 months.

RBC commented: “We think MYD is at an inflection point as annualised gross transaction value (GTV) exceeds $200m, SKUs pass 5m and customers approach 700k. Key operating metrics indicate the business is starting to benefit from a flywheel effect.”

“This increasing scale presents an opportunity for MYD to position itself as a leading online player focused on a category that is seeing accelerating online penetration. A successful private label strategy is key, as it improves unit economics, provides a point of differentiation and can help build a brand,” the broker concluded.

It also notes that its shares trade at a sizeable discount to Kogan.com Ltd (ASX: KGN) and Temple & Webster Group Ltd (ASX: TPW).

More reading

• 2 ASX small cap shares tipped for big things
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• MyDeal.com.au (ASX:MYD) share price up 7% on trading update
• These 3 ASX shares to IPO recently are struggling
• Are these small cap ASX shares the next Kogan (ASX:KGN) and Nearmap (ASX:NEA)?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Kogan.com ltd and Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Tesla Inc (NASDAQ: TSLA) have already soared nearly 500% so far in 2020 but will surge to new all-time highs in the coming year.

That’s according to Wedbush analyst Daniel Ives. On Monday, Ives raised his price target on Tesla’s stock from $500 to $560 but presented a bull case that envisions the stock more than doubling to $1,000. His new base target represents potential gains for investors of roughly 14% over the stock’s closing price on Friday of about $490. It’s the bull case, however, that is most intriguing.

Ives cited several recent achievements by Tesla, including its inclusion in the S&P 500 Index (SP: .INX) and the company’s “sustained path to profitability” as helping continue Tesla’s momentum. He views the bull-story growth through the lens of increasing demand for electric vehicles (EVs) worldwide.

“Overall we are seeing a major inflection of EV demand globally with our expectations that EV vehicles ramp from about 3% of total auto sales today to 10% by 2025,” Ives wrote in a note to clients.

Will Tesla’s stock price hit $1,000?

Tesla started out 2020 saying it expected to deliver 500,000 vehicles, though it was somewhat hamstrung by the pandemic. The company has delivered roughly 318,000 cars so far this year, so reaching its initial target seems unlikely.

With sales of EVs expected to triple over the next few years, and Tesla the clear market leader in the space, it isn’t unthinkable that Tesla will be able to reach that 1 million vehicle-delivery goal over the next several years — if not sooner.

That said, Tesla already has a significant amount of growth baked into its share price. The stock’s valuation clocks in at a lofty 19 when a reasonable price-to-sales ratio is typically between 1 and 2. While it’s certainly possible that Tesla’s stock price could hit $1,000, I don’t expect it to happen in the coming 12 months.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The TOWER Limited (ASX: TWR) share price lifted today after the company entered a settlement agreement with the Earthquake Commission (EQC). The deal regards an outstanding receivable resulting from Canterbury earthquakes. At the time of writing, the Tower share price is up 4.6% to 58.5 cents. In comparison, the All Ordinaries Index (ASX: XAO) is hovering above 1.2% to 6,855 points.

Let’s take a closer look at the New Zealand-based insurer and what’s driving the Tower share price higher today.

Settlement reached

Tower said it had settled with EQC for $42.1 million, with the funds including disbursement to reinsurers and costs.

The company advised that the write-off of the residual amount would impact its FY20 reported net profit by $9.5 million. The additional funds will further strengthen its capital position moving forward into FY21.

Pleasingly for Tower, the settlement amounted to 76% of the gross carrying value listed in its accounts. Tower will provide an update on dividend payments with its FY20 results to be released tomorrow.

What did management say?

Commenting on the agreement, Tower chief executive Sid Miller said:

The series of earthquakes suffered by the Canterbury region caused a number of complexities in allocating building and land damage and the cost of repair between different earthquake events. This settlement is a significant milestone for EQC in our Canterbury Earthquake recovery program.

Tower chair Michael Stiassny, added:

The Canterbury earthquakes remain a significant event in New Zealand’s history and will have a lasting impact on the community. For Tower, this legacy resulted in distractions that have been progressively removed over the years and it is important we provide the management team with clear air to move the business forward and accelerate.

The board determined that reaching this settlement agreement dealt with any remaining unpredictability and gave certainty to our shareholders, who will be pleased to see this risk removed from our business.

Tower share price summary

The Tower share price has had a challenging 2020, falling from its multi-year high of 74.5 cents in December 2019 to today’s price of 58.5 cents. This represents a decline of 21%.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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GetSwift Ltd (ASX: GSW) shares plummeted today after the company announced it received a letter from the Federal Treasurer of Australia, Josh Frydenberg. The letter was advising the Treasurer’s views on the company’s proposed plans to re-domicile itself in Canada. By the close of trade, the GetSwift share price had plunged by 10.94% to 28.5 cents. This came after the company this morning reported Mr. Frydenberg’s letter has effectively blocked the company’s plans to delist itself from the ASX, pending the conclusion of its court cases.

What’s the background behind this?

The GetSwift share price has plunged since September when the company announced it was planning to delist itself from the ASX, and list its shares with an obscure Canadian stock exchange, Neo. At that time, management said the move reflected its business strategy in North America, and the fact its significant investors are based there. Under the proposed scheme, a newly formed corporation incorporated in Canada named GetSwift Technologies would become the parent company of the GetSwift group of companies.

This move was subsequently brought to the Foreign Investment Review Board (FIRB) for approval. In a letter dated 20 November, the Treasurer advised the company that he was “considering whether I should issue an order prohibiting GetSwift from making the proposed acquisition”.

The Treasurer wrote:

Without prejudging the outcome of Australian legal proceedings currently on foot, it is my preliminary view that the proposed acquisition would be contrary to the national interest at this time due to there being ongoing legal matters concerning GetSwift, which are yet to be resolved.

What legal matters is GetSwift currently facing?

The legal matters to which the Treasurer referred in his letter concern ongoing legal proceedings brought by the Australian Securities and Investment Commission (ASIC) against the founders of GetSwift – Bane Hunter and former AFL player, Joel Macdonald. 

ASIC alleges that GetSwift, through its directors, Mr. Hunter and Mr. Macdonald, made misleading representations regarding customer contracts to the ASX in 2017, which sent its share price soaring at the time. If found guilty, both men could face permanent corporate bans in Australia. 

The company is also facing another class action brought by law firm, Phi Finney McDonald, on behalf of shareholders. This addresses concerns about the amount of GetSwift cash finding its way overseas, as well as the recent plans to relocate to Canada.

How did the GetSwift share price do in 2020?

As mentioned, the GetSwift share price has plunged more than 60% after its delisting announcement in September. On a year to date basis, the GetSwift share price has lost 40%. At the current price of 28 cents, the company has a market capitalisation of around $69 million.

GetSwift is a technology-based, last mile logistics provider. It makes money from customers like Red Rooster in Australia by determining the best delivery route to transport product from stores to customers’ homes. The company is yet to be profitable.

More reading

• ASX 200 rises more than 1% on Tuesday
• Here’s why the Bravura Solutions (ASX:BVS) share price raced higher today
• ASX stock winners from the $23 billion Victorian state budget
• 3 reasons the Redbubble (ASX:RBL) share price is in the buy zone
• Elon Musk is now the world’s second richest person

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) rose by around 1.25% today to 6,644 points.

Here are some of the main highlights from the ASX today:

Some resource ASX shares surged higher today, except gold

Gold was the one resource sector to suffer a decline today whilst other areas like oil went higher.

The Silver Lake Resources Limited. (ASX: SLR) share price fell 9.4%, the Perseus Mining Limited (ASX: PRU) share price fell 7.6%, the Northern Star Resources Ltd (ASX: NST) share price fell 8.9% and the Saracen Mineral Holdings Limited (ASX: SAR) share price dropped 9%.

At the opposite end of the ASX 200 was the oil business Beach Energy Ltd (ASX: BPT) share price which rose around 8.2%. The Whitehaven Coal Ltd (ASX: WHC) share price shot higher by 6.9% and the Woodside Petroleum Limited (ASX: WPL) share price went up around 3%.

Over the weekend, the Oxford University-AstraZeneca vaccine showed average effectiveness of 70%, with one dosage option giving 90% protection.

Other resource shares also went higher with the BHP Group Ltd (ASX: BHP) share price rising 3.4% and the Rio Tinto Limited (ASX: RIO) share price going up around 2.2%.

Brickworks Limited (ASX: BKW)

Brickworks held its annual general meeting and gave a trading update as well.

The construction business gave some more details about its industrial property trust’s progress that it owns half of together with Goodman Group (ASX: GMG).

It said that development activity by the property trust has continued at an unprecedented scale. At Oakdale West, construction of the Amazon distribution facility is well advanced and is due to be completed in September 2021. Brickworks also said that infrastructure works are also proceeding to schedule and will allow construction of the Coles Group Ltd (ASX: COL) distribution warehouse to commence early in 2021.

Once these two facilities are completed, net rental distributions will increase by over 25% and gross assets held within the property trust is expected to exceed $3 billion. Management said that there is sufficient remaining land to provide at least a further five years of development.

Brickworks said that its Australian building products division has made a strong start to FY21, with first quarter earnings well ahead of the prior corresponding period.

However, in North America sales in recent months have been below expectations because of impacts of COVID-19.

The Brickworks share price went up 4% today in reaction to this update.

TechnologyOne Ltd (ASX: TNE)

ASX 200 software business TechnologyOne reported its FY20 result today. It grew revenue by 4% to $299 million. Revenue from its software as a service (SaaS) and continuing business went up 12% to $269.8 million and SaaS annual recurring revenue (ARR) rose by 32% to $134.6 million.

Reported profit before tax went up 8% to $82.5 million and underlying profit before tax went up 13% to $86.1 million. The company reported that its underlying profit before tax margin increased to 29%, up from 27% in the prior corresponding period.

Reported profit grew by 8%. It was impacted by a one-off increase in legal provisions, because of a judgement against TechnologyOne in a civil employment case.

The company continues to work on a transition away from its legacy licence business to SaaS. Its legacy licence business was down 34%, which reduced the profit and loss by $14 million in FY20.

TechnologyOne declared an annual dividend of 12.88 cents, which was an increase of 8% compared to last year. Its cashflow generation of $66.4 million was an increase of 49% compared to last year.

The TechnologyOne share price rose by around 0.4% in reaction to this news.

More reading

• ASX stock winners from the $23 billion Victorian state budget
• ASX energy shares surge ahead as oil rises to 9-month high
• Why ASX, Kogan, Myer, & Northern Star shares are dropping lower
• Could Citi’s forecast spell good news for the Lendlease (ASX:LLC) share price?
• Why ASX gold shares are the worst performers so far today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It was a great day of trade for the Bravura Solutions Ltd (ASX: BVS) share price on Tuesday.

The financial technology company’s shares charged 4% higher to end it at $3.43.

Why did the Bravura share price charge higher?

This afternoon Bravura released the annual general meeting presentation for its virtual event.

At the event the company spoke positively about its long term prospects and provided the market with commentary around its expectations for FY 2021.

In respect to the former, management believes Bravura is well-positioned for long term growth. Particularly given the high level of investment it has made into its key Sonata platform.

Bravura Chair, Neil Broekhuizen, commented: “We have invested over A$210m in our flagship product Sonata. This investment has positioned Sonata as a market leader in our key regions and has delivered excellent returns for shareholders.”

“In FY20, we invested an additional A$36m in our product suite to further enhance digital functionality across our offerings. This includes the development of Sonata Alta, our new cloud-based operating model that gives our clients the agility to ‘plug and play’ best-of-breed technology solutions to achieve the functionality they need,” he added.

In light of this, the company’s chief executive officer, Tony Klim, believes Bravura is “well positioned to achieve sustainable growth in the years ahead, energised by our new Sonata Alta proposition and recent acquisitions.”

FY 2021.

While the longer term outlook is looking rosy, its near term performance is facing sizeable headwinds due to the COVID-19 pandemic.

Management notes that the pandemic has lengthened the sales cycle and stifled its growth this year.

Mr Klim commented: “As noted at Bravura’s FY20 results, while the new sales pipeline remains strong, due to the wider impact of COVID19 there is greater uncertainty in the timing of deal closures when compared to prior years. It is possible that FY21 NPAT will be similar to FY20.”

However, Mr Klim has warned that the majority of its earnings will be generated in the second half of the financial year.

He explained: “In October 2020, we also flagged that the second wave UK lockdowns and stalling Brexit negotiations have increased uncertainty and are slowing the progress of pipeline opportunities in the UK. As a result, Bravura expects FY21 NPAT to be weighted approximately 80% to the second half of FY21.”

Mr Klim appears confident this is just a short term headwind and expects the company to benefit from favourable industry tailwinds in the future.

The chief executive said: “The onset of the COVID-19 pandemic has increased the importance financial institutions have placed on engaging more closely with their customers. Bravura has developed enhanced digital applications that allow our clients to meet this demand. Our technology platforms address the key issues faced by the world’s financial institutions.”

More reading

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• Fund managers have been buying Kogan (ASX:KGN) and this ASX share
• Are these beaten down ASX shares bargain buys?
• Here’s where this ASX fund manager is investing right now
• These ASX dividend shares beat term deposits and savings accounts

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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State budgets are normally ho-hum affairs for ASX investors, but the $23.3 billion record deficit in the Victorian state budget will deliver benefits to some ASX stocks.

The bungled handling of the initial COVID‐19 response to the pandemic means the state’s economy will suffer this financial year, reported the Australian Financial Review.

But growth should rebound strongly in FY21 with the Andrews government spending big to create jobs to stimulate its economy.

ASX construction stocks the biggest winners

The biggest winners are those involved in infrastructure construction. The state is coughing up close to $10 billion on rail projects like the Melbourne Airport Rail Link.

Then there’s another $2 billion set aside to upgrade and build hospitals, including the redevelopment of the Warrnambool Base Hospital.

The construction boom doesn’t stop there. The AFR reported that Victoria is committing $5 billion to build 12,000 new public housing homes in the next four years. Of these 1,000 of which will be reserved for indigenous Australians, 1,000 for domestic violence victims, and 2,000 for those with mental illness.

ASX stocks best placed to benefit

A number of ASX engineering outfits will be excited if they can win any of the work. This includes the Downer EDI Limited (ASX: DOW) share price, and Lendlease Group (ASX: LLC) share price.

The Seven Group Holdings Ltd (ASX: SVW) share price could also get a boost as rental demand for heavy machinery is likely to increase.

Speaking about hospitals, the Paragon Care Ltd. (ASX: PGC) share price may also experience renewed investor interest. Paragon supplies many of the equipment and consumables used in hospitals, including beds.

Regional tourism uplift

There is also good news for the Webjet Limited (ASX: WEB) share price. The state is pumping $465 million to promote domestic tourism. This comes on top of a program that would give 120,000 people $200 vouchers if they spent $400 or more on accommodations and/or tourist attractions.

Webjet offers an online hotel booking site and that’s why its seen to be better placed than rival Flight Centre Travel Group Ltd (ASX: FLT) in this regard.

No free meals from the Victorian budget

But it’s not all good news for business. The Collins Foods Ltd (ASX: CKF) share price and Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price might come under a bit of pressure.

Victoria will be the first in the nation to introduce sick leave for casual workers as it trials a two-year program. Business will ultimately fund the program for 600,000 workers through industry levies.

Fast food businesses rely heavily on casual staff and their relatively skinny margins will get squeezed more with the trial.

More reading

• Why fund manager optimism is at almost 3-year highs
• Could Citi’s forecast spell good news for the Lendlease (ASX:LLC) share price?
• Why ASX gold shares are the worst performers so far today
• ASX 200 jumps 1.2%: Technology One results, Brickworks update, gold miners sink
• Should you take a bite of these tasty ASX shares?

Motley Fool contributor Brendon Lau owns shares of Seven Group Holdings Limited and Webjet Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Collins Foods Limited, Domino’s Pizza Enterprises Limited, and Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Redbubble Ltd (ASX: RBL) share price was a strong performer on Tuesday.

The ecommerce company’s shares ended the day 4% higher at $5.19.

This latest gain means the Redbubble share price is now up an impressive 31% over the last couple of weeks.

Can the Redbubble share price still go higher from here?

One leading broker that believes the Redbubble share price can still go even higher from here is Goldman Sachs.

At the end of last week, the broker reiterated its buy rating and $6.25 price target on the company’s shares.

Based on today’s share price, this price target implies potential upside of 20% over the next 12 months.

What did Goldman Sachs say about Redbubble?

Goldman reiterated its buy rating in response to Redbubble announcing the appointment of its new chief executive officer. You can read more detail on this appointment here.

The company has named former SEEK Limited (ASX: SEK) executive, Michael Ilczynki, as its new CEO, effective 27 January.

The broker notes that Mr Ilczynki was with the job listings giant for 13 years, where he has worked in strategy, product & technology, and commercial operations, culminating as CEO of its Asia Pacific & Americas businesses.

The broker appears pleased with this appointment and continues to believe that Redbubble is well-positioned for growth. It named three reasons why it thinks the company’s shares are in the buy zone:

“(1) expansion of its TAM through continued broadening of its product categories.”

“(2) potential growth from increasing repeat usage on its platform (still relatively low at <1.5X p.a.).”

“(3) further operating leverage as we expect RBL to manage cost growth well below revenue growth over our forecast period (we forecast opex to grow at a 7% CAGR FY20E-FY23E vs. a marketplace revenue CAGR of 18% driving EBIT margins from 1.2% in FY20E to 11.3% in FY23E and an EBIT CAGR of 151%),” Goldman concluded.

More reading

• Why Accent, Mesoblast, Redbubble, & Regis Healthcare shares are charging higher
• Redbubble (ASX:RBL) share price on watch after naming former SEEK exec as new CEO
• ASX stock of the day: Redbubble (ASX:RBL) shares up 5% today
• 2 fast-growth ASX tech shares that are being sold off
• Why the Redbubble (ASX:RBL) share price has crashed 20% lower today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Elon Musk, the enigmatic and eccentric CEO of four different companies, has always been a captivating, and controversial figure. From the infamous ‘going private at $420’ tweet and a public stoush with the United States Securities and Exchange Commission (SEC) to marketing flamethrowers and smoking cannabis on-air during a podcast, Musk is never far from the headlines of the investing world, it seems.

But that reputation has done nothing to dent this man’s ability to make money – a fact on full display today. Reporting in the Australian Financial Review (AFR) today reveals that, as measured by the Bloomberg Billionaires Index, Elon Musk is now the world’s second-richest person. He displaces the long-term incumbent of the No. 2 spot, Bill Gates, of Microsoft Corporation (NASDAQ: MSFT) fame. Bill Gates has only ranked below No. 2 once before in the past eight years. He was sitting at the No. 1 spot until 2017 saw Gates knocked off the perch by Amazon.com Inc‘s (NASDAQ: AMZN) founder Jeff Bezos. However, the AFR does point out that if Gates hadn’t donated more than US$27 billion to various charities since 2006, his position would be higher.

Tesla drives Elon Musk up the rich list

Mr. Musk’s net worth reportedly surged a staggering US$7.2 billion this week to US$127.9 billion ($175.3 billion), meaning he has also added an almost-inconceivable US$100.3 billion to his net worth in 2020 alone. The AFR points out that Musk ranked ‘just’ 35 on the index back in January.

Mr. Musk runs three private companies: SpaceX, The Boring Company and Neuralink as well as (of course) Tesla Inc (NASDAQ: TSLA), which is publicly traded.

And it’s Tesla that is driving Musk’s fortune today. The AFR tells us that Mr. Musk has around three quarters of his net wealth in Tesla stock at the current time, with his Tesla position worth around four times as much as his SpaceX investment.

That’s what tends to happen when a company goes parabolic, which is the only word that one can really use to describe the performance of the Tesla share price over recent years. Tesla shares are up more than 500% in 2020 so far, including 24% in the past month alone. They are also up more than 1,300% since May 2019, and up an eye-watering 13,500% since the company’s initial public offering (IPO) back in 2010.

Over the past month, the Tesla share price has soared, including by more than 8% in one day last week after it was revealed that the US$494 billion company would finally be added to the flagship US S&P 500 Index (SP: .INX) next month. This optimism is based on the fact that Tesla will see billions of incoming funds heading its way as index and exchange-traded funds (ETFs) that track the S&P 500 are forced to buy into the company come December. When Tesla is added to the S&P 500, it will be the seventh largest constituent by market capitalisation, just below Warren Buffett’s Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B).

More reading

• It’s official: Like it or not, millions will own Tesla stock soon
• Tesla (NASDAQ:TSLA) share price zooms 8% on S&P 500 news
• Average Aussie needs 22 weeks to earn what Elon Musk does in 5 minutes
• Here are the US shares that CommSec customers are buying
• Tesla Stock Jumps on News It Will Join the S&P 500

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Berkshire Hathaway (B shares), Microsoft, and Tesla and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and short December 2020 $210 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Amazon and Berkshire Hathaway (B shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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