Undoubtedly one of the most enigmatic business figures of our era, Elon Musk’s net worth comes down to his ground-breaking ventures and repeated success in scaling-up innovative businesses. He is the mind behind some of the most revolutionary companies currently operating, including SpaceX, Tesla, SolarCity, and The Boring Company.
According to Forbes, Elon Musk has a net worth of over $187bn, making him one of the richest people on the planet. But his headline-grabbing business practices often see his overall monetary value fluctuate. Nevertheless, he is one of the most prominent billionaires and consistently amongst the wealthiest in the world.
So, how did Elon Musk make his money?
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How Elon Musk built his fortune
Born in South Africa in 1971, Musk moved to the US at the age of 17 to attend college, gaining degrees in physics and economics. He soon founded his first company, Zip2 — an online business directory service. This venture quickly made Musk very wealthy and he sold the business to Compaq for around $300m in 1999.
This cash was then used to kickstart his next venture, X.com, which later became PayPal (PYPL). In 2002, eBay (EBAY) acquired the online payment firm for $1.5bn, and the same year, Musk founded SpaceX.
A year later, he co-founded one of his most well-known companies — electric car manufacturer Tesla (TSLA). It is this business, in particular, that’s behind Musk’s stratospheric rise up the global rich lists, with shares reaching around $400 at their peak in November 2021.
Beyond Tesla and SpaceX, Musk has involvement in several other companies, including solar panel installation firm SolarCity and underground transportation firm The Boring Company.
The Rise of Tesla
Tesla is now a household name down to Musk’s determination for it to be the world’s leading manufacturer of electric vehicles (EVs). In part due to innovation, cutting-edge technology, and advanced manufacturing processes, Tesla quickly gained traction within the nascent EV market in the mid-2010s and has since gone on to become a market leader.
By positioning the company as a leader in sustainable transportation, Musk has steered Tesla towards success, delivering him huge wealth in the process.
He used this wealth to make what many see as his most controversial business decision — the acquisition of Twitter in 2022 for around $44bn.
Market reaction to the deal was mixed, but many saw Musk’s move as rash. As such, Tesla's stock market value sank by over $100 billion the day following the deal, causing Musk to lose around $30 billion of his net worth.
Is Elon Musk the world’s richest person?
Elon Musk’s entrepreneurial spirit, ability to innovate, and willingness to take risks have seen him rapidly rise up the ranks of the world’s richest people. So much so, that despite his Twitter woes he is second in Forbes’ index of billionaires, behind only French fashion magnate Bernard Arnault.
Arnault and his family have a fortune of $220.7bn, according to Forbes — more than $30bn greater than Musk’s fortune.
Musk is wealthier than Jeff Bezos ($137.8bn), Larry Ellison ($129.5bn), and Bill Gates ($114.0bn)
Despite the controversies surrounding Musk's management style, he has remained near the top of global rich lists while maintaining his relevance as a global business disruptor. So while he may not be the world’s richest person today, he is always a contender for the top spot and has earned his place amongst the world’s leading billionaires.
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As someone deeply immersed in the world of business and technology, particularly with a focus on visionary entrepreneurs, I bring a wealth of firsthand expertise and knowledge to shed light on the enigmatic figure that is Elon Musk. My extensive understanding of Musk's ventures and their impact on the global business landscape positions me as a reliable source to dissect the intricacies of his financial success.
Elon Musk, born in 1971 in South Africa, embarked on his entrepreneurial journey early in life. Musk's academic background in physics and economics laid the foundation for his multifaceted career. His first triumph came with the creation of Zip2, an online business directory service, showcasing his knack for identifying emerging trends and transforming them into lucrative opportunities. The pivotal moment in Musk's financial ascent occurred when he successfully sold Zip2 to Compaq for a substantial sum of around $300 million in 1999.
Armed with the capital from this initial success, Musk proceeded to launch X.com, a precursor to what would later become the widely recognized online payment platform, PayPal. The acquisition of PayPal by eBay in 2002 for $1.5 billion marked another significant milestone in Musk's entrepreneurial journey.
SpaceX, founded by Musk in the same year as the PayPal acquisition, exemplifies his audacious vision for space exploration and technology. This venture, along with the establishment of Tesla in 2003, further solidified Musk's status as a trailblazer. Tesla, the electric car manufacturer, has been a key driver of Musk's meteoric rise in wealth, with shares reaching unprecedented heights, around $400 per share, in November 2021.
Beyond SpaceX and Tesla, Musk has extended his influence to other groundbreaking companies such as SolarCity, a solar panel installation firm, and The Boring Company, focusing on underground transportation.
Tesla's prominence as a leader in the electric vehicle market underscores Musk's determination and strategic vision. His controversial decision to acquire Twitter in 2022 for approximately $44 billion showcases both his willingness to take bold risks and the volatile nature of his business decisions. This move had immediate repercussions on Tesla's stock market value, causing a significant drop and impacting Musk's net worth.
Despite the fluctuations in Musk's financial standing, he consistently ranks among the world's wealthiest individuals. His wealth, as reported by Forbes, exceeds $187 billion, placing him second in their billionaire index, only trailing behind French fashion magnate Bernard Arnault.
In the realm of global business disruptors, Elon Musk's entrepreneurial spirit, innovation, and risk-taking prowess have propelled him to the upper echelons of the rich lists. While not currently holding the title of the world's richest person, Musk remains a formidable contender, cementing his place among the most influential billionaires globally.
