Where Does Elon Musk’s Fortune Come From?
With a fortune of around $74.5 billion, Elon Musk ranks 29th in the Bloomberg Billionaires Index. But where did this fortune come from?
Born in 1971, Musk co-founded the online payment system PayPal in 1999. In that same year, eBay acquired PayPal for $1.5 billion. Musk invested $2.5 million of the PayPal success into his space travel company SpaceX and into the electric car manufacturer Tesla Motors, which he heads today.
In October 2002, Musk met Martin Eberhard and Marc Tarpenning, the founders of Tesla Motors. Eberhard and Tarpenning approached Musk for money and also for his engineering experience. Musk became the third co-founder, and he took on the position of Chairman of the Board and Chief Product Architect.
In June 2004, Musk invested $6.35 million of his own money into the company, a move his friends and family advised against. Musk was the largest investor and shared the CEO role with Eberhard, with whom he had a public falling out about the direction of the company. After various other disagreements, Eberhard officially stepped down in 2007.
Today, Tesla is worth around $352 billion. Musk holds 21% of shares, which means that his part of the company’s worth equals $74.5 billion.
Musk was also the first investor in both SolarCity and Hyperloop Technologies. He invested a reported $10 million into SolarCity and is currently owned around 22% of the company. Hyperloop Technologies was founded in 2014 for construction of the Hyperloop, a high-speed transport system that would move cargo and people capsules through low-pressure tubes. Even though he hasn’t invested much into the company, he has appointed himself CEO.
In March 2017, SpaceX launched its first reusable rocket. Reusability not only makes space travel more environmentally friendly, it also significantly reduces costs. This change has allowed Musk to start a project to colonize Mars – as a goal to expand life to the red planet. Musk claims that the only way he can make money is if SpaceX becomes profitable by transporting cargo and personnel to and from outer space.
PayPal
Elon Musk obtained the majority of his current fortune from his involvement in the payment system PayPal. As the CEO and co-Founder, Musk led a transformation of the payment system by becoming the first to create a one-click payment system. This first and revolutionary idea helped the company become a $1.5 billion global business in just a few short years.
One of the best decisions Musk has made since his involvement with PayPal was to take his $2.5 million share of the sale and invest it into his current endeavors: SpaceX and Tesla Motors.
Tesla Motors
Tesla Motors, founded in 2003, is an American company that designs and manufactures electric vehicles. The world-renowned Tesla cars are the result of the brand’s innovative hybrid system, which allowed them to be the first company to present the concept of an ‘electric car’ to the public.
Tesla is responsible for a wave of electric vehicles now present in the market; however, it was considered an extremely risky idea at first. The venture was Musk’s idea and he invested his own personal funds as a financial backup. It has been reported that Musk has invested around $6.35 million into Tesla Motors and currently owns 22% of the shares. In 2021, the company is worth a staggering $350 billion, and Musk’s personal stake is worth $74.5 billion.
SpaceX
Space Exploration Technologies Corporation, commonly known as SpaceX, is an American aerospace manufacturer and space transportation services company founded in 2002.The company manufactures and launches advanced rockets and spacecraft, and Elon Musk is the CEO, CTO, and chief designer. He’s also the founder and CEO of The Boring Company, an infrastructure and tunnel-construction company.
The Boring Company was founded in 2016 with a mission to reduce traffic with tunnelling using new technology. By introducing electric skates (vehicles that travel through high-speed tunnels) and other high-capacity transport systems, Musk’s company improved the capability of tunnel construction projects. Since its launch, the company has managed to land important contracts around the world, including a construction project in Las Vegas.
SolarCity
In 2006, Elon Musk provided the funding to launch SolarCity, a clean energy company. The company is currently the largest solar energy provider in the US, having installed or leased around 3 million solar systems in over a decade.
In the early days, SolarCity received investment from some of the top venture capitalists in Silicon Valley. Elon Musk provided $31 million in Series A funding. He also loaned SolarCity $90 million and invested a further $58 million in 2013. This investment proved to be beneficial, as SolarCity went public in 2012 and is now a key player in the renewable energy industry. The company is currently worth a reported $10 billion and Musk owns around 22% of the company’s shares.
Hyperloop Technologies
Hyperloop Technologies Inc. is an American-based company which designs, develops and produces a high-speed transportation system. The system combines both the low pressure of a tunnel and an electric propulsion system, as well as air bearings, in order to move people and goods quickly and efficiently.
Elon Musk was the first investor in the company, leading the way for other investors. Musk is also the current CEO of the company and is often credited with the idea of the Hyperloop. Over the years, Musk has attracted heavy investment for the Hyperloop, and the company is now a major player in the transport sector.
Musk’s Impact in the Space Industry
In 2012, Musk and SpaceX made history by becoming the first ever commercial company to send a spacecraft to the International Space Station. This feat has been followed by numerous other successes and has opened up new opportunities for travel and exploration.
Musk has also produced a number of revolutionary innovations which have had an impact on the space industry. These include the Falcon 9, a reusable heavy-lift launch vehicle for satellite launches, and the Dragon, a reusable spacecraft designed to take cargo and one day astronauts to the International Space Station.
Musk also has plans to colonize Mars. SpaceX has already tested some prototypes of its spaceships, called Starships, and the company is currently developing a combined reusable rocket and spacecraft system to propel people to Mars in the near future.
Musk’s Impact on the Automotive Industry
The high-end electric vehicles manufactured by Tesla Motors have revolutionized the automotive industry by achieving better performance than combustion engines and also by being completely emissions-free. Elon Musk and his company have become a beacon of innovation and progress, encouraging other automotive manufacturers to follow suit and invest in electric vehicles.
Tesla cars are becoming increasingly popular, and the company even began to offer autonomous driving capabilities in its flagship vehicles. This is just one of the many noteworthy advancements in the automotive industry upheld by Musk and Tesla Motors.
Conclusion
Elon Musk’s fortune of $74.5 billion was acquired through his involvement with PayPal, Tesla Motors, SolarCity, and a number of other ventures. He was an early investor in businesses such as Tesla Motors, taking a large financial risk when investing his own funds for the company’s growth. Musk has also had a major impact on the space and automotive industries, introducing revolutionary products and technologies that have made an indelible mark on modern society.
