Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk, whose net worth has immensely benefited from the green energy trend, faces stiff competition from Indian billionaire Gautam Adani.
What Happened: A rapid rise in the stocks of companies controlled by Adani has catapulted the tycoon to the spot of Asia’s second-richest person behind compatriot Mukesh Ambani. Adani is the chairman and founder of the power-to-ports conglomerate Adani Group.
According to the Bloomberg Billionaires Index, Adani is now the 14th richest person with a net worth of $73.1 billion, just two places behind compatriot Ambani who has a net worth of $86.5 billion. Musk, with a net worth of $171 billion, stands third on the list.
Adani has added record wealth this year, next only to LVMH Moet Hennessy Louis Vuitton SA (OTC: LVMUY) CEO Bernard Arnault. This is despite a recent rout in stocks of his companies fueled by a report that India’s national share depository froze accounts of 3 Foreign Portfolio Investors that had stakes in Adani Group.
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AGEL Boost: Adani even beat the gains for Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) chairman Warren Buffett, and Ambani for the biggest growth in wealth this year, according to a report by Bloomberg. His net worth got a major boost from a 354.8% gain by Adani Green Energy Green Limited (AGEL), a renewable energy company, over the past year.
Political Backing: Like Ambani, Adani has long been a vocal supporter of India’s Prime Minister Narendra Modi. A report by the Financial Times in November last year had noted that critics feel Adani’s rise is symbolic of a system where too much power is in the hands of too few.
Why It Matters: AGEL, one of the largest renewable companies in India with a current project portfolio of 13,990 MW, has said it plans to become the world’s largest solar player by 2025 and the world’s largest renewable company by 2030.
In May, AGEL said its acquisition of SoftBank Group Corp. (OTC: SFTBY)-backed SB Energy Holdings Limited for an enterprise value of about $3.5 billion will enable it to achieve its target renewable portfolio of 25 GW four years ahead of the target timeline. The acquisition is the largest in the renewable energy sector in India.
While Adani has done well at home, his controversial Carmichael coal mine in Australia has faced intense criticism from environmentalists.
See Also: Tesla Could Find An Even Bigger Market In India Than China, Says Analyst
Tesla In India: Tesla has recently made several moves as part of its plan to enter the Indian market, including hiring local talents to oversee its operations in the country. India’s huge market holds similar potential for Tesla as China does.
It was reported in April that Tesla is planning to open its first showroom and an office in Mumbai, India’s financial capital.
The Palo Alto-based company has already registered its headquarters in the southern Indian city of Bengaluru.
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