Elon Musk is undoubtedly one of the most captivating figures of our era. He is the mastermind behind some of the most ground breaking companies of our time, including SpaceX, Tesla, SolarCity and The Boring Company. Musk also made one of his most controversial acquisitions, buying Twitter for $44 billion.
According to Bloomberg, Elon Musk has a total net worth of $264 billion, making him the richest person in the world. Plus, Musk is on track to become the world’s first trillionaire by 2027, according to the Trillion Dollar Club’s 2024 report.
But how did Elon Musk make his money? The answer involves a number of factors.
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Elon Musk's net worth and building his fortune
Born in South Africa in 1971, Musk moved to the US at the age of 17 to attend college. He pursued degrees in physics and economics before founding his first company, Zip2. The company provided online business directories and maps to newspapers and was later sold to Compaq for almost $300 million in 1999.
Musk used the proceeds from the sale to start X.com, an online payment company that later became PayPal. In 2002, eBay acquired PayPal for $1.5 billion. After the sale of PayPal, Musk turned his attention to space exploration, founding SpaceX in 2002. The company aimed to reduce the cost of space travel and eventually colonise Mars. SpaceX has since become a significant player in the space industry, launching satellites and resupply missions to the International Space Station. The company made history in October as it launched the most powerful rocket in the world, according to Politico.
Musk is also the CEO of Tesla, which he co-founded in 2003. The company is best known for its electric cars, but also produces solar panels and energy storage systems. Tesla is the main reason his wealth has exploded in recent years.
The growth of Tesla is commendable, with the company’s revenue jumping from $12 billion in 2017 to $54 billion in 2021. According to Forbes, Tesla’s stocks hit a four-month high in June, with its share price sitting at $214. This boosted his net worth by 19%. And the Trillion Dollar Club’s 2024 report reveals Tesla has a market value of $669.3 billion. The electric car company has been growing at a rate of 173.3% per year – if this continues, Tesla could be worth $1 trillion by 2025.
Beyond his involvement with SpaceX and Tesla, Musk has also been involved in other ventures, such as SolarCity, a solar panel installation company that Tesla acquired in 2016. He also founded The Boring Company, which is focused on building underground transportation systems.
How Elon Musk created Tesla
Tesla's rise to the top of the automotive industry can be attributed to a variety of factors, all of which have played a crucial role in the company's meteoric success. Tesla's relentless focus on innovation and cutting-edge technology have been the most significant factors contributing to its success. By creating electric cars that surpassed anything else on the market, Tesla gained a competitive advantage over its rivals and established itself as a pioneer in the field of electric vehicles.
Tesla's marketing strategy was another critical factor in driving sales and creating a loyal customer base. It generated significant buzz and excitement around its products by positioning itself as a leader in sustainable transportation, appealing to a wide range of consumers looking for environmentally friendly alternatives to traditional petrol-powered cars.
Elon Musk's vision and determination have helped steer Tesla towards success, even in the face of significant challenges and setbacks. By investing heavily in research and development, Musk has ensured Tesla's products remain at the cutting edge of electric vehicle technology while driving down costs and improving efficiency.
Its innovative outlook is also proving to be favourable, with Tesla using artificial intelligence (AI). Musk tweeted that ‘the car has a mind,’ referring to Tesla’s advancements in using AGI (artificial general intelligence). Although there have been no details on a breakthrough, it’s a teaser of what to expect from the company.
More recently, Musk took to X and commented on a post stating Tesla could make its own AI chips. Currently, Nvidia dominates the market, selling more than 70% of AI chips according to The New York Times. Nvidia is booming in the sector as it invested in AI long before ChatGPT and AI bots came on the scene. Plus, Musk added on X that, even though Tesla could make its own chips, ‘I sure hope we don’t have to’.
Tesla's commitment to safety is yet another key factor contributing to the company's success. The cars are equipped with a range of advanced safety features, including collision avoidance systems and advanced driver assistance features, which have established the company as a leader in the field of automotive safety.
Factors contributing to Elon Musk's net worth
Musk’s success is a result of his entrepreneurial spirit, ability to innovate and willingness to take risks.
He has always been willing to take on significant challenges and pursue his passions, even when the odds are against him. His achievements with Zip2 and PayPal gave him the financial resources to pursue his dream of space exploration with SpaceX. His success with Tesla has propelled him to the top of the Forbes billionaires list.
His more recent acquisition of Twitter (now X) also raised some eyebrows. The billionaire has a 9% stake in Twitter, making him the largest shareholder in the company. He’s already unblocked controversial personalities since taking over, such as Andrew Tate and Donald Trump. Musk has also recently made headlines for giving around $75 million to Trump in the past three months, to help him with his presidential run.
Despite the controversies surrounding Musk's management style, tweets and public comments, he remains one of the most visionary and influential figures of our time. His companies are making a profound impact on the world, from reducing the cost of space travel to accelerating the transition to sustainable energy.
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