Can Elon Musk Reach a $1T Net Worth in the Future? If Yes, It Will Not Be Thanks to Tesla
Another company founded by Elon Musk has even more potential for the future than Tesla.
Driven by the great monetary inflation we have been experiencing since March 2020, the Tech bubble continues to inflate in the stock market. Tesla is getting closer to the $1 trillion market cap.
We are not there yet as Tesla has a market cap of $867 billion at the time of writing, but all indications are that Tesla can reach such a milestone in the coming weeks if the Tech bubble continues to inflate.
This phenomenal surge in Tesla's market cap has allowed Elon Musk to become the richest man on the planet with a comfortable lead over his great rival in the conquest of space, a certain Jeff Bezos.
Elon Musk has far surpassed Jeff Bezos to become the richest man in the world
The fortune of Elon Musk is currently estimated at 219.9 billion dollars, against 198.1 billion dollars to the founder of Amazon.
Elon Musk has thus seen his fortune grow by over $190 billion since March 2020. It's a huge amount, but it's logical since he owns 21% of Tesla's shares.
When Tesla outperforms, as it has for almost two years, Elon Musk's fortune follows the same trend. Tesla has just published its results for the third quarter of 2021 with a turnover of 13.76 billion dollars, up 57% and above analysts' expectations.
Tesla sold a record number of 241,300 vehicles during the period. The most interesting thing here is that Elon Musk's company managed to increase its production despite the shortage of electronic chips and supply difficulties for certain products, which have been disrupting the automotive sector for several months.
Tesla's net profit for the period even reached a record level of 1.6 billion dollars.
Many fantasize about Elon Musk reaching the $1T milestone in the future
Given the phenomenal success of Elon Musk, but also the incredible increase in his fortune over the past eighteen months, many people are now wondering if Elon Musk can one day become the first man to reach a fortune of 1,000 billion dollars.
At first glance, one is tempted to say that it seems impossible.
Since Elon Musk owns 21% of Tesla, the company would have to be valued at just over $4.761T for his fortune to reach $1T. That's still twice as much as Apple, which is currently the most valuable company with a market cap of $2.467T.
However, Elon Musk has more than one trick up his sleeve, as he is first and foremost a genius serial entrepreneur. Besides Tesla, Elon Musk also founded SpaceX. It is precisely this last company that could allow him to one day reach the milestone of a net worth of $1T.
If Elon Musk is to reach the $1T net worth milestone, it will be thanks to SpaceX rather than Tesla
Founded in 2002, the company has defied all preconceived notions about the timing and development of rockets and launchers. According to several analysts, SpaceX has the potential to become the world's most valuable company in any industry.
The Starship reusable rockets developed by SpaceX, which can transport people and goods to the Moon or Mars, have the potential to revolutionize investors' expectations in the space field. For some, talking about Starship today is like talking about the Internet before Google.
Elon Musk's space exploration company was valued at $100 billion in early October 2021, making it the second-largest privately held company in the world, behind ByteDance.
Nevertheless, several analysts agree that the company could already be worth much more, around $200 billion. This is huge when you know that Elon Musk holds 54% of SpaceX shares.
This is enough to make his fortune explode as the value of SpaceX is bound to increase in the coming years, as SpaceX operates a range of products with high potentials, such as space infrastructure, Earth observation, or deep space exploration.
If the $1,000 billion net worth milestone still seems far away for Elon Musk, he is probably the only personality who can achieve it in the years to come. And not because of Tesla, but rather because of the spectacular success that everyone is predicting for SpaceX in the future.