Elon Musk is not only the richest man in the world, but he’s also one of the most interesting and successful businessmen out there today.
You might have heard about Elon Musk’s wealth, but do you know what earned him all this wealth? Here are some things you may not know about Elon Musk’s basic economics.
Elon Musk is The Richest Man in the World
Elon Musk currently sits on top of Forbes’ list of richest people with a net worth of 244.2 billion USD. In 2008, he sold PayPal to eBay for $1.5 billion and used a fraction of that money to start Tesla Motors, becoming a world-changing company. Tesla is moving toward more affordable (and better) electric cars than we’ve ever seen before, as well as innovative clean energy systems like SolarCity. His latest ventures include SpaceX, co-founding OpenAI with Sam Altman and Y Combinator, and being CEO and CTO at Tesla Motors and chairman at SolarCity – all while still sitting on multiple boards! With The Boring Company coming up, his position as the richest man in tech will likely continue over…or will it? What can other entrepreneurs learn from Musk’s wealth creation strategies? Is there anything else you need to know about him? Read on…
We’ve done some research, done some calculations, and come up with some staggering facts: Just how does Elon Musk make money? How does he spend his billions? Who are his most prominent competitors in making money (hint: look beyond Google!)?! I found out all these answers by reading The Wealth of Superfans by Patricia Lockwood. This infographic sums up my findings nicely: By now, you’re probably wondering how Elong Musk made so much money so quickly? Here is the answer
By starting Zip2, Paypal & Tesla Motors He definitely didn’t just ‘invent a new way to organize knowledge’ or build on any one idea or trend; instead, he took what was already there and changed things forever.
How Elon Musk Became The Youngest Self-Made Billionaire Ever
In 2004, at 28 years old, Elon Musk became a billionaire by starting an online payment service called PayPal. A few short years later, he founded SpaceX, which has created revolutionary advancements in space travel and exploration. Then he formed Tesla Motors and helped launch an electric car revolution. Now his estimated net worth is roughly 20 billion dollars. What kind of cars does Elon Musk drive? Read on to find out… With all that success, we’d be surprised if Mr. Musk spends any money on expensive luxury brands—but he owns several exclusive vehicles! One of his more notable rides is a McLaren F1 sports car (above). He reportedly purchased it after selling PayPal to eBay in 2002 for $1.5B—and it looks like it was worth every penny! The McLaren F1 can reach speeds up to 240 miles per hour, making it one of the fastest street-legal production cars ever made!
Tesla Is Worth More Than GM
Tesla’s stock price rocketed over $250 per share, with Elon Musk’s wealth soaring by $1.7 billion as a result of a single tweet. Over 400,000 cars have been pre-ordered at that price point, and Tesla’s long-term prospects continue to look bright. The conventional wisdom says Tesla is worth roughly half as much as GM, but that makes no sense whatsoever if you think about it. Here are some key points on why I believe Tesla could be worth much more than GM within a few years… It has three times better revenues (most experts say top-line matters a lot). It has 3x better profit margins (it made $10b in profits last year; whereas GM lost money). It invests in future tech (semi-autonomous driving systems, battery/charging network, and SolarCity integration). At the same time, its biggest rival continues to buy back its shares from shareholders instead of investing for growth. It generates higher returns on capital than GM: ROIC for TSLA over the last decade = 16% vs. 5% for GM.
Tesla Signs Deal To Construct Gigafactory
Tesla has signed a deal with Panasonic to build Tesla’s massive lithium-ion battery factory, according to Bloomberg.
The plant will be called Gigafactory 1 and will begin construction later this year. It is slated to be finished and produces more batteries than all other factories around combined when running at total capacity, producing 500,000 electric car batteries each year by 2022. Elon Musk claims he chose Berlin as Tesla’s new home because of its business-friendly policies. But his friendship with Governor Sandoval—the two regularly dine together—certainly didn’t hurt either. According to Musk, both men have great respect for one another, and that trust was vital in persuading him that Nevada was a good fit for his company. Without question, though, tax incentives were also an essential part of sealing the deal: In total, officials hope that up to $1 billion in tax incentives will convince Tesla Motors Inc.
How Does Elon Musk Spend His Money?
It would be a mistake to think I’m a person who has it all figured out. I’m definitely not, says Elon Musk. He owns 5 percent of Tesla, which is trading around $943 per share at press time, making his stake worth about $244.2 billion today.
That number jumps to more than $9 billion if you include stock options, according to Bloomberg data—and there are plenty of reasons why he might choose not to sell those shares anytime soon. But even with his massive net worth and SpaceX looming on his horizon, there are still plenty of things that make him wonder how much he has accomplished. And beyond all of his professional pursuits, Musk says, each needs to find something they’re passionate about. I have friends who say, ‘What do you mean? You created three multi-billion dollar companies.’ I don’t feel like one, and Musk told journalist Ashlee Vance for Vance’s book Elon Musk: Tesla, SpaceX and the Quest for a Fantastic Future. Wouldn’t you feel like an idiot talking to someone else as if they were an idiot? You’ve got to love what you’re doing. So how does he spend his money? Here are some clues.
Elon Musk Sparks Controversy On Twitter
Elon Musk has been known to spark controversy from time to time on Twitter. Most recently, he sparked controversy when he suggested a Tesla supporter might be connected to TSLA short-sellers and that they’re keeping his business down with fraudulent tweets. But perhaps his most significant Twitter gaffe came back in 2013 when he tweeted; I believe there is more than a 50% chance that SpaceX fails. And yet here we are a few years later, and Elon Musk has built one of America’s most valuable private companies… no doubt about it, much like Warren Buffett and Bill Gates before him, Elon Musk is one of America’s richest men. If you look at Forbes’s real-time billionaire’s list (which updates hourly), today, Elon Musk just overtook Mexican telecom mogul Carlos Slim for The Richest Person In The World. So how did he get there? How did an eccentric California rocket scientist go from working out of a rented house with five employees to building spaceships and electric cars that rival some nations? The answer lies in what many call Basic Economics: supply and demand. While many economists generally consider a slightly outdated economic theory, Basic economics still holds when appropriately applied. When applying essential economics, one thing needs to happen: Demand must exceed supply, or else products cannot be sold at prices consumers will pay; ever heard of JCPenney? Exactly!
5 Ways to Revolutionize Our World with Elon Musk’s Boring Company
Elon Musk is revolutionizing our world with many of his companies, such as SpaceX and Tesla. His newest venture, The Boring Company, has a different kind of vision that might be just as important.
Just like Elon Musk changed how we think about electric cars and private space flight, he could change how we build roads. If he can follow through on his visions, what would that mean for those who live near these new boring tunnels? What will it mean for people trying to get across cities without traffic? And what does all of it mean for humanity? This post will explore how Elon Musk could change our lives by changing how we dig holes. It will look at each tunneling project underway (yes, there are multiple). It also explores Musk’s reasons for digging underground rather than above-ground.
Finally, I’ll take a quick look at where we go from here—for both Elon Musk and everyone else. Elon Musk is revolutionizing our world with many of his companies, such as SpaceX and Tesla. Share your thoughts in the comment section.