Elon Musk is an individual who needs no introduction – he is the founder and CEO of Tesla, the founder of SpaceX and Neuralink, and the Chief Product Architect of SolarCity, just to name a few. He is worth an estimated $36.5 billion, making him one of the richest people in the world – and his fortune is ever-expanding. But where did all this money come from?
As one could imagine, a large portion of Musk’s fortune has come from the profits made from his many businesses – Tesla alone has successfully brought in $7.2 billion from its share price since its initial public offering in 2010. Meanwhile, SpaceX has made a total of $126 million in contracts with the U.S. government and its commercial cargo services, and SolarCity has seen an estimated revenue of $348 million in 2017. These businesses, in addition to various investments he’s made in other companies, have all contributed to Musk’s wealth.
Apart from these successes, in 2002 Elon founded X.com, an online payments business that was later re-branded to PayPal. Musk’s venture in the payments business turned out to be incredibly valuable as he was eventually able to profit off of his initial investment by selling the company to eBay for $1.5 billion, if which he received $165 million.
However, not all of Musk’s wealth has been created by his own businesses. Like many of the ultra-rich, his fortune has also been supplemented by stock options, options under executive compensation plans, and stock awards. One example is Tesla’s 2012 IPO, which allowed Musk to purchase $5.5 million in employee stock option grants at a discounted price of $6.63 per share – and this price was eventually increased to $220 per share in 2018.
Yet while these stock options, grants and investments are all very much legal according to US financial regulations, there is no doubt that some of Musk’s financial success is a result of insider trading. Musk has allegedly used his knowledge of future corporate initiatives and potential acquisitions to make timely investments – which is why the US Securities and Exchange Commission has begun to investigate the validity of his investments.
With all of this said, it can be argued that Elon Musk’s fortune is the result of a combination of natural business acumen, legal investments, and potentially illegal insider trading. He has taken his fortune thus far, expanding it from a mere $165 million to today’s estimated total of $36.5 billion – and yet his wealth certainly doesn’t end there.
Tesla and the Automobile Industry
Elon Musk’s biggest success as of now has come from Tesla, Inc., the business he founded in 2003 with the goal of mass-producing electric cars with a near-zero emissions profile. As one of the only major car-manufacturers to build totally electric vehicles, Tesla has been able to differentiate itself from the other established competitors in the automobile industry, setting the stage for major success.
By fulfilling a niche unmet by the other car companies, Tesla was able to make a name for itself in a market that was eagerly awaiting an electric car alternative. The break-throughs in battery technology and design enabled the company to provide an innovative product that appealed to those who wanted an efficient and environmentally-friendly car. This craving for a new alternative to traditional vehicles allowed Tesla to eventually become more than just a startup – it is now a publicly-traded company worth an estimated $50.3 billion.
The innovation and radical ideas behind Tesla have also pushed the other major car companies to invest more resources into their electric vehicle and autonomous driving technology. Volkswagen CEO Manfred Weber has gone on record saying “we have to catch up with Tesla to realize the vision of autonomous driving and electric mobility”, while GM has invested heavily into self-driving cars in their newest offerings. This response by the competition shows that Tesla has instilled a sense of urgency in the industry, one where competition and attention to detail is paramount.
Tesla’s overall success has not only increased Elon’s net worth, but has also provided a platform for other electric car companies to emerge. These new companies have utilized the insights made by Musk to compete in the industry and provide more options for consumers who are looking for a non-traditional way of transportation. As such, Tesla’s success has helped bolster the electric car industry and usher in a new era of transportation – one that could potentially end our dependence on fossil fuels.
SpaceX and Reusability of Spacecraft
SpaceX, one of Musk’s earliest successes, was founded in 2002 with the expressed mission of making space travel more viable and accessible. After successfully launching into space in 2008 with an orbital rocket, Musk began to work on his next goal – to make spacecrafts reusable and thus make long-distance space travel cost-efficient.
Through a focused effort and dedication to this goal, Musk was eventually able to develop the world’s first fully-reusable rocket, the Falcon 9. This rocket was successfully launched and retrieved, with the majority of the rocket being intact after its re-entry back to Earth. This breakthrough in space travel made SpaceX the undisputed leader in the industry, and led to many more successful launches in the years that followed.
Overall, SpaceX has become a major force in space exploration and innovation, as the company has furthered the cause of space travel and made it more accessible to the general public. As a result, Elon was able to make a large sum off of the company’s success and secure more money for the other companies he owns. As his products and services become more in-demand, SpaceX is sure to be a major factor in boosting Elon’s net worth and producing a large return on his investments.
Neuralink and Human Computer Interfaces
Neuralink is Elon Musk’s latest venture, a business that seeks to develop brain-machine interfaces (BMIs) by implanting electrodes into a person’s brain. Through this technology, it is hypothesized that humans and computers could be connected to one another, enabling a more seamless exchange of data and information. As of now, the business and technology are still in their early stages of development.
So far, Neuralink has been able to make significant strides in the industry, with successful tests being performed on primates and plans for human trials in the near future. Musks’ main goal with Neuralink is to eventually pave the way for humans to think faster than computers and develop the means to both record and edit one’s thoughts and memories. Achieving this grand vision of merging humans and machines is certain to net Musk a sizeable sum, as well as help expedite the development of advanced technologies.
An additional factor that has increased the potential of Neuralink is the current Covid-19 pandemic. With the decrease in available physical therapies, many have turned to the use of brain-computer interface systems as a means of restoring lost motor function and treating other illnesses. As such, Neuralink has become an even more attractive venture, as the potential for usage in healthcare has become more of an opportunity for investors and consumers alike.
Neuralink in the Medtech Industry
Neuralink’s potential for use in the medtech industry has created a great deal of buzz and speculation about potential applications. Reecently, many experts have hypothesized that Neuralink could be used to treat brain-related illnesses such as Parkinson’s and Alzheimer’s, as well as provide assistance to those who suffer from a lack of muscle control. It has even been suggested that its technology could help restore re-balance and treat long-term injuries.
Many experts have suggested that the successful implementation of Neuralink’s technology would allow scientists to develop new treatments for various disabilities and medical issues. For example, research has shown that the technology could be used to restore memory function, help treat hearing loss and sight impairment, and even allow for the implantation of artificial organs. All of these potential possibilities are sure to increase Musk’s value, as well as exponentially grow the medical industry.
Neuralink’s potential for success in the medtech industry looks promising, as recent studies have suggested that many people are open to the idea of using the technology to better their lives. However, the potential for success relies heavily on the acceptance of the technology by the public, which will likely take some time before it can truly be established.
Artificial Intelligence and Musk’s Businesses
Elon Musk’s businesses have also made great strides when it comes to artificial intelligence. Neuralink, as previously mentioned, seeks to merge the human brain and computer networks, while OpenAI – a business owned by Elon – seeks to develop advances in artificial general intelligence. Both of these businesses have seen success, as Musk has been able to acquire great sums of capital for investing in research and development.
Furthermore, Tesla’s autonomous driving technology has become a major success, allowing the company to become one of the first car manufacturers to offer self-driving vehicles. This new technology has made it easier and safer for people to travel, while making Tesla’s vehicles more attractive to potential customers.
Musk’s influence in the industry can be seen in other companies as well. Startups such as Vicarious AI, Vicar Technologies and DeepMind have all seen major breakthroughs in artificial intelligence, making them major competitors in the market. All of these companies have received capital from Musk’s investments, helping to propel them to success and expand the reach of artificial intelligence.
Elon Musk and Global Technology Impacts
Though Elon Musk’s fortune isn’t the result of one single factor, today it’s clear that his most significant successes have been rooted in his willingness to invest in and create breakthrough solutions in the worlds of automobiles, space travel, and artificial intelligence. Through the innovations and the companies that he’s created, Musk has been able to greatly impact the global technology industry, forcing competitors to stay competitive and cutting-edge.
In addition, Musk’s businesses have helped to inspire and encourage as well. Millions of people have been able to experience and benefit from his products and services, while others have looked to him as an inspiration – proof that through sheer will and ambition anybody can succeed.
Musk’s businesses have made him one of the most successful and widely-recognized entrepreneurs of our time, and the success of his companies will likely continue to fuel his growing fortune. The future of technology looks to be more innovative and exciting than ever, and Elon Musk stands at the forefront of this movement at the helm of some of the most important companies in the world.
