Elon Musk: The Richest Man in the World?
Elon Musk, who was born in South Africa, is a shining success story in the world of business and entrepreneurship. He is the founder, CEO, and CTO of SpaceX, CEO and founder of Tesla, and chairman of SolarCity. In the past few years, he has become significantly wealthier, and there have been rumors that he could soon become the richest man in the world. But has he ever been the wealthiest individual?
From a net worth perspective, the answer is a definitive and resounding no. He has yet to surpass Amazon’s CEO Jeff Bezos, who ranked first in 2019 with $110 billion, and has maintained that position in 2020 with a net worth of $182 billion. Forbes currently estimates Musk’s net worth to be in the region of $84.8 billion.
It is true, however, that Musk briefly became the wealthiest person in the world. On January 7th 2021, Tesla’s stock price rose by an incredible 10%, shooting up Musk’s net worth to a one-day total of $188 billion. His stake in the company increased to $151 billion, while Bloomberg confirmed that it was enough to make him the richest person in the world.
But after the stock market closed, Musk’s wealth reverted to its regular levels. Bezos regained his title of the world’s wealthiest individual with a net worth of $182 billion.
Despite this fact, there is still a great deal of speculation that Musk’s wealth could soon exceed Bezos’. There are a number of factors that could lead to this happening – factors that are likely to accelerate in the coming months. For example, Tesla’s stock price has had an overwhelmingly positive response from investors – and this is set to continue as the company successfully launches new ventures and continues to grow. In addition, Musk holds an impressive number of shares in SpaceX – approximately 54%.
As of now, Bezos has maintained the title of the world’s wealthiest individual for the past four years. But with the increasing number of successes achieved by Musk and his companies, it might not be too long before the South African tech entrepreneur takes that crown.
The Controversy Surrounding Elon Musk’s Wealth
It’s important to point out that there has been an element of controversy surrounding Elon Musk’s rise to wealth, in particular his 2020 salary of $595 million in Tesla stock. This decision has been heavily criticized by many, with some accusing the company of incompetence due to awarding such a high salary to Musk while slashing employee wages.
The company’s chief financial officer Zach Kirkhorn justified these actions by claiming “…in order to motivate and retain Elon Musk as CEO and to incentivise him to stay focused on and committed to the success of the company, the board determined he should receive an option award that vests based on both time and achievement of specified milestones.”
This position has, however, not been accepted by everyone. On the other hand, though, some have argued that it is legitimate for Tesla to take this route because of Musk’s contributions to the company, including his long-term commitments and his innovation.
What should be noted, ultimately, is that despite the controversy, the potential for Musk to soon be the world’s wealthiest individual remains. His personally-owned stock options in Tesla alone could make him significantly wealthier, which could potentially be exacerbated by the company itself attaining further levels of success in the near future.
The History of Elon Musk’s Net Worth
Elon Musk has come a long way since 2018 when his net worth was estimated to be just under $24 billion. At the start of 2019, his wealth was up to $22.6 billion, soon rocketing after a successful year for Tesla, who’s shares were performing particularly well. By the end of 2020, Musk’s net worth had grown to $117 billion – to now reach $84.8 billion.
The most extraordinary changes in Musk’s wealth history has come in 2021, a year that has seen Tesla continually break stock market records and deliver groundbreaking technological advancements.
The Legitimacy of Elon Musk’s Wealth
It is true that much of Elon Musk’s wealth is composed of stock options, which have gained value exponentially in recent months. But it’s important to note that rich stock options alone don’t guarantee success or wealth if there is no corporation backing them.
In the case of Elon Musk, the stock options are based on a company that he himself founded, one that regularly produces groundbreaking technological advancements and one that is heavily-invested in. It’s incredibly improbable that the stock options will become worthless – so from this perspective, there is no doubt that Musk’s wealth is both legitimate and justified.
The Unpredictability of the Financial Market
The financial market is notoriously unpredictable. That’s why it’s difficult to make any predictions about Elon Musk’s wealth in the long-term. In the last 24 hours alone, his net worth has also decreased by $3.29 billion. It is possible that his net worth could take another sudden plunge.
On the other hand, it’s also possible that his wealth is likely to continue rising. Tesla’s stock market successes in recent months have been nothing short of incredible, and with many expecting that the company will only continue to perform well, it’s definitely possible that Musk’s wealth could further increase.
The Impact of Elon Musk’s Wealth
One of the greatest impacts of Elon Musk’s increasing wealth is the increased attention and focus on business and entrepreneurship. His success story has motivated countless individuals and has become an example of how to achieve success through hard work and determination.
In addition, Musk’s donations to charities and public service initiatives also cannot be overlooked. Through ‘The Musk Foundation’ he has consistently donated millions to relief efforts – including donations to Australia during the 2019-2020 bushfire season and $30 million to create a permanent artificial intelligence research centre.
The Role of Technology in Musk’s Wealth
The rise of technology has played an integral role in Elon Musk’s success story. His companies are heavily technology-based, and he constantly looks for innovative solutions and ways to make technological advancements.
One example of this is the Autopilot feature of Tesla’s cars. This is a great demonstration of Musk’s dedication to his work. It’s also strengthened his position in the world of business, due to the fact that Tesla’s autonomous vehicles are in high demand.
The company also has plans to expand into the market of autonomous trucking – a venture that Musk started in 2016. This could potentially become incredibly lucrative, meaning that Musk’s wealth could be set to increase further.
Conclusion: Elon Musk On the Verge of Being the Richest Man in the World?
Regardless of whether he eventually becomes the world’s wealthiest person, there is no doubt that Elon Musk has achieved remarkable success through his inventive ideas, relentless work ethic and commitment to technology.
Jeff Bezos has managed to maintain his position as the world’s wealthiest individual for the past four years, but there is a good possibility that this could be about to change. With Tesla and SpaceX continuing to raise funds and the company’s stock prices soaring, it’s hard to deny that Elon Musk is on the verge of being the richest man in the world.
