Possibly the most famous billionaire on the planet is definitely Elon Musk. In addition to having a wealthier net worth than Jeff Bezos and Bill Gates, Elon Musk also controls well-known companies including the electric vehicle maker Tesla, the space exploration company SpaceX, and, most recently, the social networking site Twitter. But how did Elon Musk make his fortune and become wealthy enough to consider purchasing Twitter?
How did Elon Musk become rich – the road to his fortune
But, Elon Musk hasn’t always been at the top of the heap. Early in 2020, his worth was only a tenth of what it is now. His net worth as of November 10 was £188.1 billion (£165.2 billion), according to Forbes. In comparison to just a fortnight before, when his value was $221.5 billion (£192.1 billion), this amount represented a decline of more than $33 billion (£29 billion) or 15%. Because the fortune of Elon Musk is mostly dependent on his Tesla shareholding, which fluctuates with the markets, his net worth is subject to regular adjustments. Due to worse-than-anticipated trading, the market value of Tesla has fallen by about 46% this year, and it is anticipated that his Twitter acquisition will cost him more money than it will bring in.
However, his ownership share in electric vehicle manufacturer Tesla and, to a lesser extent, his holdings in businesses like Space X and Boring Company, are responsible for Musk’s startling increase in fortune. Besides, Tesla has been his main means of accumulating money, with the company’s stock rising by more than 1,100% in the previous five years as investors rewarded it for its tremendous rise in vehicle sales. From $12 billion in 2017 to $54 billion in 2021, Tesla’s revenue increased dramatically.
How much does Elon Musk’s fortune weigh? According to the most recent World Bank figures, Elon Musk is worth more than the gross domestic product (GDP) of more than 150 nations and territories. This includes the complete GDPs of nations including Iran, Portugal, and New Zealand. Musk’s net worth is almost 10% of the GDP of the UK.
Shares in Tesla – the main source of Elon Musk’s fortune
Musk claims he doesn’t believe in selling his shares, but in the last year, he has sold Tesla stock valued at billions of dollars. A tax bill on stock options that were scheduled to expire in August 2022 was one factor in the sale of Tesla stock, according to Musk, who told Babylon Bee that he “wanted to execute those options no matter what.” In 2022, he also sold more stock before a legal dispute with Twitter. By the middle of August, Musk had sold shares in the automaker for close to $7 billion. Musk stated on Twitter that he sold the stake to avoid having to make “an emergency sale of Tesla stock” if his attempt to get Twitter’s $44 billion acquisition canceled fails. According to FactSet, Musk currently owns 14.9% of Tesla’s outstanding shares, representing a stake worth nearly $124 billion.
Musk does not get a salary from Tesla, but the company has given him large option packages for exceeding certain performance benchmarks. According to Forbes, Musk’s stake is worth $176.3 billion. Hence, this is the main source of the fortune of Elon Musk.
The SpaceX Holding
Elon Musk has long believed that mankind must evolve into a multi-planet civilization in order for the human species to survive. As a result, his other company, SpaceX, was founded in 2002. Musk aimed to develop more affordable, reusable spacecraft for use in space commerce. The company has an agreement with NASA to handle the International Space Station’s freight transportation within six years (ISS). In 2020, the company launched its first manned mission with the intention of sending people into space. As a result, NASA was able to stop relying on Russia for transportation and start using aircraft that left from US land to bring personnel to the ISS. The company is currently developing its starship, which it intends to use to settle Mars.
According to Bloomberg, SpaceX had a value of $125 billion in June 2022, with Musk owning around 44% of the company. Given the 15% discount Bloomberg applies, which is typical of large private tech companies that sell stock on the secondary market, his stake would be worth approximately $55 billion.
Twitter and Boring Company
Musk launched the tunnel building company Boring Company, which has contributed another $3.3 billion to his riches. In recent years, Elon Musk has also started two additional businesses. While Neuralink is working to create telepathic links with machines, The Boring Company is a company that excavates large holes in the ground. This breakthrough could completely change the lives of those with neurological illnesses or serious spinal injuries.
Elon Musk acquired a 9.1% interest in Twitter on April 4 before making a takeover offer public a few days later. Later, it was discovered that the entrepreneur had been stealthily accumulating shares since January. The board of the massive social media company initially attempted to block the acquisition in a move that suggested they perceived it as a hostile takeover. However, as criticism from shareholders mounted, Twitter’s leadership made a U-turn and decided to sell the firm to Musk on April 25 for $44 billion (£38.5 billion). But this action was only the start of what was destined to become a protracted saga. Since the purchase, the billionaire has claimed that he bought the platform because “having a common digital town square is crucial to the future of civilization.” He continued by saying that he thought it could find use for reducing social barriers.
In essence, Twitter, as the latest add-on to his fortune, could develop into a marketplace where you could get food, pay for a taxi, or play games. A similar economic strategy to that of Facebook’s owner Meta would be made possible by such a move, which might prove crucial given the platform’s struggles to produce a profit and considerably enhance the money generated by Twitter.
