How Did Elon Musk Make $100 Billion This Year?
Elon Musk’s ascension to $100 billion in net worth this year has fews precedents. In 2020, the visionary entrepreneur made a spate of business decisions and product launches that propelled him to his newest milestone. How exactly did Musk, who only became a billionaire in 2012, become the second richest person in the world this year? We’ve analyzed the key components of Musk’s journey to his newest milestone and highlighted some key insights from experts.
Product Launches and Business Ventures
Musk’s most significant contributions to the industry include the introduction of novel products. With Tesla, he launched the Model S, a fully-electric sedan, in 2012 and followed up with the Model 3 sedan in 2017. His space exploration company, SpaceX, also made waves when it revolutionized the space tourism industry with reusable, cost-effective rockets.
To complement these powerful, innovative products, Musk developed a series of high-stakes business ventures. He pivoted Tesla away from selling cars and towards selling solar panels and storage solutions for renewable energy. He also forged partnerships with companies all over the world, from technology giants like Microsoft to automotive behemoths like Volkswagen.
In addition, Musk founded a venture capital fund, devoted to propelling the world towards the energy revolution he holds dearly. He has also ventured into clean energy production with his company SolarCity. Musk’s ambition and hard work culminated in his latest success, the 100 billion-dollar milestone.
A Growing Appetite for Renewable Energy
Musk’s success this year has nothing to do with luck. In effect, it is an indication of the growing global interest in renewable energy. His releases at Tesla, Microsoft and SolarCity all reflect the increasing demand for renewable and clean energy sources.
In a recent interview, the Chairman of the American Wind Energy Association and expert in clean energy, Gregory Wetstone, said, “Elon Musk stands out because he was able to bring together complementary products, technologies, and resources into a cohesive product offering, and he did it first at a global scale.” Musk’s savvy investments likely helped him capitalize on the new trend of global clean energy production.
Leveraging Social Media
Musk’s success was not purely driven by his products, but also by the way he marketed them. His savvy use of social media ensured that the public remained interested in his ideas and companies. Musk consistently utilized his knowledge in Twitter, Instagram and Reddit to build a powerful public image and draw attention to his ventures.
By employing a distinctive humor and cleverly reacting to what his followers had to say, Musk created a massive fan base. As a result, he was able to quickly build up public support for Tesla, SpaceX and SolarCity. With over 33 million followers on Twitter and millions of dollars in investments, Musk set the stage for his meteoric rise.
Rational Investing
Musk wisely invested in his companies and other potential investments. He saw it necessary to trust the market and follow his intuition, which led him to bet in many projects like solar energy, cybertrucks and even the development of innovative rocket fuels.
It is also worth noting that Musk always put his money in other people’s products, something that served as the cornerstone of his success. With investments in the wind energy industry, electric vehicles and other related projects, Musk secured a reputation as a shrewd investor.
According to Jim Ryan, a professor of financial management at the Harvard Business School, “When you become wealthy, you want to make sure that you use your money to increase it, and make it work harder for you. That’s very much why many people turn to investing in the markets, and Elon Musk is no exception. Musk was able to strategically invest his money in projects that he believed in, with very impressive end-results.”
Opportunism and Risk Taking
Musk’s success also lies in his careful risk taking. Rather than taking rash decisions and banking his wealth on uncertain projects, he invested in sure bets. He bet on Tesla and SpaceX when they were just burgeoning companies and stayed with them through thick and thin.
Though Musk experienced a few growing pains along the way, his bold decisions eventually paid off and set him on the right course. His commitment to his products and conviction in the viability of clean energy projects, among a variety of other projects, enabled him to reach the $100 billion milestone.
AI and Automation
Elon Musk’s success also depends on his embrace of automation and artificial intelligence (AI). Automation has been critical for Tesla in particular, as it has allowed the company to save costs and increase production efficiency.
Musk has been an outspoken advocate for the use of AI and robotics to transform the automotive industry, and many of his subsequent business decisions demonstrate his dedication to the cause. In 2018, for instance, Tesla announced that it would be introducing a fleet of self-driving cars by 2020. This move is likely to revolutionize the industry.
Moreover, when Tesla announced plans to open a new Gigafactory in China to manufacture electronic components, Musk revealed that the factory will be “fully automated”. This speaks to his commitment to create faster, more efficient production processes, which in turn have solidified his financial success.
Robotics and Tech Innovation
Apart from his vision in automation, Elon Musk’s investments and inventions in the field of robotics have made their own substantial contribution to his $100 billion milestone. He initially invested in robotics when he founded a company called OpenAI in 2015, with the goal of automated artificial intelligence everywhere.
This technology has since been used to tackle some of the most challenging projects in the world, from robotic surgery to autonomous driving. Moreover, Musk’s other invention—the Neuralink—will revolutionize the way we interact with technology. This is yet another example of Musk’s commitment to stay ahead of the curve and take his success to the next level.
Hybrid Energy Projects
Elon Musk’s investments in hybrid energy projects is another factor that helped him reach the $100 billion milestone. He has backed many projects in commercial and residential sectors, including Powerwall and SolarCity. These initiatives significantly reduce energy consumption and have changed the way people use energy all around the world.
“These projects are a great way to transition away from traditional energy sources and create more sustainable energy sources,” said economist Samuel Isaacson. “Musk’s investments have helped to spur faster transition, inspiring the growth of renewable energy sources and the needed infrastructure to support them. These projects have proven to be a major factor in Musk’s success.”
Batteries and Electric Vehicles
In addition to his investments in hybrid energy projects, Musk has also had a hand in some key advances in lithium-ion batteries and electric vehicles. His company, Tesla produces battery packs for cars, which offer increased efficiency and improved performance.
Musk also recently unveiled a new line of electric trucks—the Tesla Cybertruck—which has taken the car industry by storm. The Cybertruck has been widely lauded for its innovative design, which the company claims is both powerful and sustainable. These battery-powered vehicles will have a significant impact on the industry in the years to come.
Robots, Automation and High-Level Manufacturing
Musk’s journey to $100 billion would not have been possible without his embrace of robotics and automation. Utilizing the latest advances in technology, Musk has brought his products to life, from automotive to space exploration. His goal of pushing the boundaries of innovation has led to a reduction in manufacturing costs, greater efficiency and improved productivity.
Musk has also been actively engaged in researching high-level manufacturing. He recently opened a research laboratory in California, dedicating it to studying the production processes behind his various inventions. From automation to energy sources, Musk is continually developing and refining the strategies behind his product launches, enabling him to further run with the technological trends of the 21st century.
Brand Leadership
At last, Musk’s success is a testament to his admirable brand leadership. Through his thoughtful and impactful marketing strategies, he has raised awareness of Tesla, SolarCity, and other ventures as well as elevated their perception in the public eye. Moreover, he has taken extra measures to ensure that his brands remain ethical, sustainable, and responsible.
For example, with Tesla, the company has started using eco-friendly materials and has prohibited the use of plastic water bottles in their factories, in an effort to limit their environmental impact. Furthermore, Musk is also actively pushing for sustainable practices in other companies as well as raising awareness about clean energy and its importance in our world.
The Future of Elon Musk’s Business Model
Though it is not yet known what the future holds for Elon Musk, the mogul’s influence and vision will remain paramount, as new business and energy models continue to be unleashed. Musk has already set a precedent for what can be accomplished with innovative products, business ventures and marketing campaigns, and established the revenue streams that organisations can use to fuel their development. Going forward, Musk’s legacy as an entrepreneur will also look to educate and empower the next generation of business minds.
