Recently Tesla earned the distinction of being the most valuable United States automaker in history, reaching a record high market value of eighty six point five billion dollars ( $86.5 Billion ), a company that started in 2003 beating out long-term companies like Ford and GM by a good 10-20 billion is quite a surprise, and people are certainly reacting.
Chances are unless you’ve been living under a rock you’ve heard of Elon Musk, when it comes to billionaires who have been in the spotlight, he’s one of the most eclectic billionaires around, and with a net worth of around 29 billion, he’s one of the wealthiest people out there, but :
Could he be wealthier ?
Could he deep throne Jeff Bezos to become the richest man on the planet ?
Could he even go as far as to become the world’s first trillionaire ?
Today we’re going to take a look at how wealthy Elon could become, but first we have to take a look at where he came from.
Elon born in South Africa, he was pretty much sent to be a tech nerd from the get-go, he taught himself to code and sold his first bit of videogame code at the age of 12, in middle school in high school he was frequently bullied by people who probably feel pretty stupid about that now, as a fellow nerd who got a few shoves back in the heyday, he went on to go to college in Canada, then in the United States where he paid for his rent by turning his college apartment into a speakeasy, and charging five bucks a head entrepreneurs come in all forms don’t they.
After earning his bachelor’s degree in physics and economics, he went on to form a startup with his brother called zip2, which was basically an internet Yellowpages with a map included, all the businesses that were around before smartphones, four years later in 1999 he sold zip2 for 307 million dollars, earning elon 22 million bucks on his own for a 28 year old, 22 million isn’t too shabby while a lot of people that age would take the money and spin it on a yacht and a house in the Hollywood Hills.
Elon had quite a bit more business in mind, he invested the money in X.COM an online banking service that was eventually bought out by PayPal, elon’s earnings from that little journey a hundred and eighty million dollars ( $180 Million ), so now we know how Yvan racked up all that money to form the companies he owns today, but :
How much of those companies earning him ?
How much will they go on to on ?
We know Tesla, we’ve seen those cars clogging up the freeway, we’ve seen Elon’s wacky antics at the helm of the company, like busting some pretty memorable moves on stage in Shanghai, with that market value of eighty six point five billion ( $86.5 Billion ), it’s clear that Tesla is doing a-okay, since Elon owns approximately 38.6 million shares in Tesla, it’s safe to say he’s doing a little more than a okay, but in an announcement in 2018, Tesla announced it won’t be paying Elon a dime for the next ten years, under a 12 step performance plan unless Tesla nearly doubles its value, if tesla manages to hit all 12 performance milestones reaching a market value of 650 billion dollars, Elon would own one 184 billion dollars worth of Tesla stock alone, making him more wealthy than Jeff Bezos with just his Tesla stock but $650 billion dollars is a lot of money, enough money to give every single person in the United States a thousand dollars with a couple of billion left to spare, is it feasible that Tesla could make that much considering the fact that in 2018.
Tesla’s sales increased by 280% and their services and other revenue increased by 68% in quarter three of 2019, it looks like they’re consistently increasing sales are leaning in that direction, but 184 billion in Tesla stock doesn’t exactly make a trillionaire lucky for Elon, he’s got a few other companies dabbling their little robot fingers in some other ventures.
SpaceX is one of Ilon’s well-known business ventures, they do a lot of work building insane rocket engines, developing private spaceflight vehicles, scaring the entire city of Los Angeles with air launches, you know usual business stuff as you’d imagine, aerospace companies rack up some out-of-this-world money with an estimated value of 33.3 billion dollars.
SpaceX is no different, however it’s their plan for the future that really manages to set them apart, with the intention to colonize Mars, create private affordable space flights and resume American astronauts spaceflight, they have a lot on their plate, but it’s their star link program that’s expected to really reel in the dome.
Starlink is a satellite initiative intending to provide high speed in low-cost internet across the globe, really the only two things you could want from the internet, but, how much is it gonna be worth?
A recent analysis by Morgan Stanley expects Starlink to blast SpaceX’s value to $120 billion dollars within the next couple of years, earning an additional $30-50 billion dollars annually, once all 12,000 satellites are up and providing Internet to countries, companies and the United States government, it’s hard to say how high this company’s market value will skyrocket, and that’s just from the stalink program alone.
Since Elon owns 54% percent of SpaceX’s stock, he’s looking at a pretty hefty amount of money going into his net-worth, that all being said as of now SpaceX is private, if they ever switch to public as Elon has stated, they’re planning to their market value could drastically increase.
So as of now we have a rough estimate of $184 billion and $120 billion with an additional $30 to $50 billion a year, but if you’re Ilon you can’t just have an aerospace company and a car company can you, I mean then just be boring, see where I’m going with this.
The boring company, the company that digs tunnels and sells flamethrowers labelled as not a flame thrower for profit, 90% of the equity is owned by Elon with another 6% held by spaceX.
The boring company plans on creating an underground high-speed transportation tunnel that runs from Los Angeles to Seattle along freeways and is accessible only by Tesla’s and other electronic vehicles, while that may not sound profitable, the entire system is estimated to earn $5 for every $1 spent and with Elon owning 90% equity that’s a lot of profit once the system is approved and in use.
As if tunnel transportation, aerospace, car and solar isn’t enough, Elon is also the majority owner of Neuralink, a brain computer interface program, no word has really come out about the company’s profits and they’ve remained relatively hush-hush about what they’re working on, but it seems like some sci-fi movie material will be coming from that business soon.
Neuralink shares its building with Open AI, another company founded by Elon, the company is aimed at creating friendly helpful AI, in other words creating AI that won’t cause a robot uprising, Microsoft invested $1 billion dollars in open AI in 2019, so it’s safe to say someone else thinks Open AI is going to profit, there you have it the business is owned and operated by Elon, can you imagine what this poor guy’s email inbox looks like every day.
Though it’s tough to say how much these companies are going to earn Elon, it seems like that trillion dollar, mark isn’t too far off, who knows what the research companies will develop or how much that underground tunnel will really earn him.
Time will tell, but things certainly are looking good for his bank account. What do you think will even become the world’s first trillionaire or will that title remained unclaimed, let me know what you think down in the comments below.