Will Elon Musk Make a Trillion Dollars? Why He May and May Not Make It This Far
The Limitless power of someone having a net worth of $1 Trillion dollars, even in say the 2030 valuation of such an amount of money, is still such an unsurpassed level of wealth and power that it is incredible. For someone like Elon Musk, who you can tell would use it for the good of humanity, such as in driving us forward in the Space Race, in cornering the electric car market so that we create less of a greenhouse effect for planet, and helping to put us in Solar Power, helping with creating functional ways of AI that can improve surgery and creating cures for illnesses, and the like, would probably not be the worst use of the $1 Trillion. In this blog post, I’ll walk through Elon Musk will likely hit a $1 Trillion net worth, and also the hurdles in front of him that could probably stop him before he hits this goal. in this blog post, we’ll answer the question of “will Elon Musk make a Trillion dollars,” Be sure to comment down below with your thoughts and opinions on the article, and to subscribe for daily finance information!
Other top candidates that could make $1 Trillion by 2030 include the following, in the order of possible likelihood:
Jeff Bezos
Elon Musk
Mark Cuban
Mark Zuckerberg
Jack Dorsey
Bill Gates
Charles Koch
Larry Page
Sergey Brin
Rob Walton
And a host of other billionaires, leave a comment down below regarding this list and tell us what you think.
Will Elon Musk Make A Trillion Dollars? Why I Think He Probably Will Pull it Off
In looking at his current holdings, Elon Musk is sitting on the following:
Tesla: Which adds around $50 Billion to his net worth
SpaceX: Which gives him around another $20 Billion in net worth
Solar City: Giving him another $6B in net worth
Boring Company: $3B in net worth
Neural Link: $4B in net worth
Liquid Cash: $3B in net worth
Homes, Cars, Real Estate, etc.: Another $1B in net worth
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This adds up to his current net worth of $90 billion dollars. The reason that I think Elon Musk could possibly surpass the $1 Trillion dollar net worth mark, is that I think Tesla and SpaceX could significantly increase their valuations, with Tesla hitting a $1 Trillion Dollar valuation at some point in the next 5 to 10 years (especially with California Governor Gavin Newsom passing a law mandating that all cars on the road within the state switch to electric/green cars by 2030). As more and more people have to get electric cars in a way that is mandated by the Government, Tesla’s amount of product that they are moving will grow to a huge number, the market will price it as such, and their earnings and financials will finally make sense with their enormous valuation. Expect Elon Musk and Tesla to both be worth north of $1 Trillion by the California switchover in early 2030.
**Update to this blog post by the way, it is now February 2021, just under six months after I originally wrote this blog post, and I have to say that I was right! Elon Musk has now surpassed Jeff Bezos and Jeff Bezos has since stepped down as CEO of Amazon, Elon Musk is now the richest man in the world and is still running all of his companies at the same time still, he has a net worth in excess of $200,000,000,000.00 which is an astronomical figure now that I think of it! Take that the GDP of Ethiopia is only about $90 Billion for 120 million people to live on! Take the fact that Slovakia only had a GDP of 120 Billion USD as well, and you will see why this is such an amazing feat!
Will Elon Musk Make a Trillion Dollars? Why He Probably Will Not
Now, the reasons why he probably will not hit this net worth number, at least anytime soon, is that I don’t see him divesting from any of his current companies anytime soon and parking his money in the market, which is exactly what he should do if he wants to 10x his net worth, which statistically he could do over the next 30 years at his current net worth were it parked into the S and P 500 right now. On top of this, Tesla is ridiculously over-valued, with the financials not supporting the current valuation at all (the market is over pricing the heck out of the stock because of its projection of the future earnings of the company, due to new global warming regulations starting to come up in key liberal states, namely California) and giving it a Price to Earnings multiple of nearly 1100 at the time of me writing this blog post. This could easily be cut to 1/7 of its current price, and financially speaking it would still be extremely over-valued. As states continue to dive into Coronavirus pandemic-preparation mode, especially with a second wave of the virus, and they pull more resources from green type deals, expect this stock to plummet and correct to something that makes sense given its current financials.
Update as of 2/27/2021. I wrote this blog post initially well before Elon Musk passed Jeff Bezos as the richest man in the world, however now I think I can definitely confirm my own suspicions here that Elon Musk will most definitely be the first man to hit $1 Trillion dollars. He is very likely the smartest person on the face of the planet, and probably the hardest working minute per minute as well. Elon Musk is no doubt going to do great things with the money, and I think nature is almost accelerating him forward at this point, giving him enough resources to monumentally accelerate science forward, taking us to Mars and beyond.
Final Thoughts on Elon Musk, Will He Make a Trillion Dollars, Or Will Jeff Bezos Take the Title?
Personally, I think that Jeff Bezos will hit this number first. It’s so risky for Elon Musk to hit this number, where Jeff Bezos has a much better change. While yes, Amazon has a ridiculously high price to earnings multiple as well, north of 120, however the reason for this is that Amazon focuses more on Free Cash Flow than it does earnings, with them having an extremely high plowback ratio and with no dividend being paid out at all or for the foreseeable future. Their earnings numbers are also misleading due to their high operating income and free cash flow numbers, which they use to grow the company rather than taking bottom line profits, so as to avoid the hefty tax consequences of doing so. I think Jeff Bezos Amazon stock is in a much better situation to 5x than Elon Musk’s Tesla is to 10x, and so I think that Jeff Bezos will probably get there around 2030 as Amazon takes over the internet, with Elon Musk getting there in 2050 as he takes over Mars. Agree with my assessment? Leave us a comment below and let us know, and be sure to subscribe to our blog for additional details and information.
Cheers!
*Inflation Hedging.com
Sources:
https://www.bankrate.com/banking/cds/cd-rates/
https://money.cnn.com/data/markets/
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