A look at the meteoric rise of Elon Musk’s net worth and how it compares to Jeff Bezos’ steadily rising wealth.
Elon Musk is known for his out-of-the-box ideas. Be it a Tesla car, a SpaceX spacecraft or a Hyperloop train, he envisages things years before the rest of the world starts thinking about them. The unprecedented growth of his companies can’t be overlooked as his ideas like space technology and self-driving cars are now being imitated by a global giant like Amazon. So, it was no surprise when Musk became only the fourth person in the world to join the $100-billion club. As shares of Tesla recorded a phenomenal growth of 475% in 2020, Musk’s net worth rose to $111.9 billion (August 31). The surge helped him overtake Facebook founder Mark Zuckerberg ($111.2 billion), and close in on Microsoft’s Bill Gates ($124 billion) and Amazon.com owner Jeff Bezos ($200 billion).
Watch: Elon Musk enters the $100 Billion Club
What made him stand apart is that he joined the elite club of Centi-billionaires within 10 years of Tesla going public. Standing at such a high pedestal of growth, Musk must be eyeing a target to replace Jeff Bezos as the richest person in the world. Musk’s meteoric rise gives an impression that such things are possible.
What made Elon Musk stand apart is that he joined the elite Centi-billionaires club within 10 years of Tesla going public.
Tesla isn’t the only money-making prospect for Musk as the likes of SpaceX and The Boring Company also generate revenue. His artificial intelligence business and ambitious plans like Hyperloop can further improve his fortunes considerably. But to look more into Musk’s future prospects, we will look at reasons behind the exceptional growth of Tesla and and the growing fame and unprecedented potential of SpaceX, and how Bezos, with whom Musk has an ongoing rivalry, has expanded his business to become the richest person on Earth.
Musk’s meteoric rise
Musk is among those billionaires whose wealth soared despite the coronavirus gripping the United States. He saw his wealth increase by $76.5 billion this year. His pay package can exceed $50 billion. Just between March 18 and August 18, Musk’s personal wealth increased 246%. It happened mainly because Tesla’s shares surged by 475% in the same time frame. Tesla’s share price was $2153.81 at the end of August. Jeffreys analyst Philippe Houchois recently raised his target for shares from $1,200 to 2,500. It means the share has the potential to grow even further.
Tesla is an investor-favorite company on online trading firm Robinhood Financial. Even as the pandemic broke the backbone of the world economy, amateur investors kept investing in Tesla. Just on Robinhood Financial, 40,000 people added Tesla shares during a single four-hour span in August.
Tesla’s decision to have a company in Shanghai bode well. Even as Musk’s California plant was shut and there was no car production, Tesla produced 3s model cars in China factory, and avoid paying import duty. As the company started delivering Model Y SUV, it invoked confidence in shareholders who were skeptical after the California plant was locked. The writing was on the wall when Tesla overtook Toyota to become the world’s most valuable car maker in July.
The writing was on the wall when Tesla overtook Toyota to become the world’s most valuable car maker in July.
Tesla’s launch of its new lithium-ion battery is also being touted as a major change in the history of electric cars. The new technology can see a car’s cost come under $25,000 within three years. If Tesla manages that, it will make way into developing countries where it can capture a nascent electric vehicle market in a big way.
Compared to the spike in Jeff Bezos’ wealth
Unprecedented growth isn’t limited to Musk, as Bezos has also asserted his authority time and again. Bezos’s company Amazon has also registered record profits amid the coronavirus pandemic. While its e-retail business grew by 40% from a year earlier, Amazon Web Services also rose by 29% and the company’s stock took a jump of 73%. Bezos also cashed in on the situation as his personal wealth increased by $74.9 billion in 2020.
Watch: The Elon Musk vs Jeff Bezos Rivalry
Musk has around a 20% share in Tesla, while Bezos has a 12% stake in Amazon. The Bezos-run company surely has a bigger market size than the Musk-run company. But if Musk’s innovative ideas keep working the way they have done in last two years, Tesla’s shares can scale greater heights than Amazon.
Jeff Bezos’s Amazon empire may have a bigger market size than Tesla or SpaceX but Elon Musk has the brains to outgrow his net worth.