While Elon Musk has become known as a prolific inventor, business leader, and tech visionary, his history suggests that he didn’t start out well-funded. In fact, prior to founding Tesla Motors, Musk had considerably less money at his disposal than some think. Although he was born into a wealthy family of attorneys in South Africa, his parents later divorced and his father erased their family fortune.
Given these circumstances, Musk had to make his own way. During his teenage years, he built computer programs to generate revenue and even worked as a night guard at a nearby factory. Later, while attending the University of Pennsylvania, he and some friends developed Zip2, one of the first online city guide services.
In 1999, he sold Zip2 for $307 million, of which he took home more than $22 million. With this money, he co-founded X.com, an online financial payments company, in 2000 that eventually merged to become PayPal. Musk was among those who took PayPal public and scored a $180 million windfall after eBay’s purchase of PayPal.
In 2001, he founded Space Exploration Technologies Corp., more commonly known as SpaceX. He invested $100 million of his wealth in the venture, a fact that underscores Musk’s deflating fortune. After his cash infusion, he put himself on a salary of just $1 to further emphasize his commitment to the company.
By the time he founded Tesla Motors in 2003, it is believed that Musk’s net worth was below $200 million. Although that sounds like a lot of money, a biographer estimated that he had $160 million after making payments on his private jet and other liabilities. That can be considered a significant drop in his net worth, compared to how much he had after leaving PayPal.
It’s clear that Tesla Motors was a significant financial risk for Musk and bears testament to his confidence in the project’s success. Indeed, it’s Tesla Motors that has pushed Musk to global fame, becoming the world’s leading electric car company and reshaping the landscape of transportation.
Early Life
Born in 1971 in Pretoria, South Africa, Musk grew up in a privileged family. His mother, Maya, was an award-winning nutritionist, and his father, Errol, was an engineer. Elon’s parents divorced in 1980, when the young boy was nine. Because the ensuing divorce settlement stripped them of the family fortune, Elon and his siblings effectively became South Africa’s version of homeless people.
In an effort to make a living, Musk and his siblings started working multiple jobs — from farming to video game programming — in order to make ends meet. During this time, Musk developed his skills in computer programming, which he later parlayed into a valuable business asset.
At the age of 17, Musk left South Africa and moved to Canada, where he attended Queen’s University. After graduating in 1995, he was accepted into the prestigious Wharton School at the University of Pennsylvania. He studied both physics and economics, including classes on entrepreneurship and venture capital.
Even while completing his degree, Musk was creating and selling computer programs. Notably, one of them, a video game called Blastar, earned him enough money to buy a used BMW.
Establishing Zip2
In 1995, while he was still an undergraduate student, Musk and his brother Kimbal founded Zip2, an Internet city guide. They eventually developed Zip2 into a multi-million dollar company and sold it to Compaq in 1999 for $307 million.
Musk’s share of the sale was estimated to be about $22 million, which he used to start X.com, a money transfer service. X.com eventually merged with PayPal and went public in 2002. Musk owned about 11% of PayPal shares and is believed to have made between $150-200 million after eBay bought PayPal for $1.5 billion in 2002.
Founding SpaceX
The same year that PayPal went public, Musk founded an aerospace manufacturing company called Space Exploration Technologies Corp. or SpaceX. Initially, Musk invested $100 million of his own money in the venture, but later gathered additional investments from venture capital firms and angel investors.
In 2008, Nike and NASA awarded the company a contract to develop a heavy lift launch vehicle. In 2012, SpaceX became the first commercial company to send a rocket ship to the International Space Station. Until then, only publicly funded agencies had ever attempted such a feat.
Founding Tesla Motors
Shortly after establishing SpaceX, Musk founded an electric car company called Tesla Motors, whose primary target was to make electric cars attractive to a wide audience by providing luxurious, high-performance vehicles with more affordable battery costs. Initially, the company was met with little success, but it turned around after the launch of its signature Model S car in 2012.
In the following years, Tesla Motors rose to global fame and emerged as the leader in electric car technology, revolutionizing the transportation industry. Since then, the company’s stock has soared and currently trades at around $614 per share, with a market cap of more than $424 billion.
Musk’s Wealth Post-Tesla Motors
Over the years, Musk has seen incredible success with Tesla Motors, both in terms of product success and financial gain. In addition to taking home stock options, he has earned millions in salary payments. These payouts reflect the respect and trust of the company’s board, which considers him a valuable asset.
All told, Musk’s current net worth is estimated to be more than $14 billion. Along with his wealth, he has also become an international public figure. Musk is a living example of what can be achieved through hard work and vision, without any significant financial backing.
Future Projects
Besides Tesla Motors and SpaceX, Musk is involved in other projects, such as providing high-speed international travel through his tunnel-digging venture called The Boring Company. He also launched Neuralink, a company that develops implantable brain-computer interfaces (BCIs) with the goal of establishing a symbiotic relationship between humans, computers, and artificial intelligence. Musk has also publicly discussed his interest in colonizing Mars.
In addition, Musk has founded nonprofit organizations such as the Musk Foundation, an organization dedicated to promoting sustainable transport, renewable energy, and developing clean water sources. He has also earned widespread praise for his commitment to science-based decision-making and supporting research initiatives, while his investments in Tesla’s batteries have shown his commitment to environmental responsibility.
Controversy
Musk has made headlines in other ways over the years. He has been called out for his anti-union policies, and for displaying sexist behavior. In 2018, he made headlines for drinking whiskey and smoking marijuana during a live broadcast of Joe Rogan’s podcast.
Most recently, a former Tesla employee accused the company of discrimination and retaliation, accusing Musk of creating a hostile work environment. Critics have also called out Musk’s disregard of COVID-19 safety protocols.
Despite a rocky past, however, Musk’s commitment to innovation and sustainability shines through in his Tesla ventures and other projects. The fact that he managed to achieve success despite a lack of resources speaks volumes about his determination, drive, and ability to think outside the box.
Impact on Transportation
Tesla Motors has been instrumental in reshaping the transportation sector. The company’s electric cars and renewable energy solutions have helped drive the adoption of sustainable energy and innovative transportation solutions. Through Tesla’s efforts, electric vehicles are becoming more affordable and accessible.
Not only that, but the company has changed the way people think about cars. Tesla Motors has made electric cars an attractive and viable option for many consumers. With its cutting-edge technology and sleek aesthetic, the company has made electric cars a formidable competitor to traditional gas-powered vehicles.
Tesla Motors has also been a leader in autonomous driving, introducing driver-assist features and self-driving capabilities in its vehicles. The company’s vehicles are already deployed in autonomous fleets, such as the Las Vegas taxi service operated by the rideshare company Lyft.
Positive Impact of Elon Musk
Musk’s endeavors have impacted not only the transportation industry, but the world in general. Musk has spent a considerable portion of his wealth to finance innovative and sustainable technologies, including renewable energy and space exploration. His success with Tesla Motors and SpaceX has revolutionized the technology industry and catapulted him to global fame.
Musk has made a lasting impact on the environment, particularly through his investments in renewable energy. His contributions to sustainability have enabled progress towards transitioning to a low-carbon economy. He has also pushed for reforms in energy policy and has set ambitious goals for the company, such as powering the entire grid with renewable energy.
His vision of a more sustainable and efficient future has made him a proponent for change. He has shown the world what can be achieved with ingenuity, persistence, and dedication.
