True! Elon Musk is a billionaire, presiding over numerous industries, and with a goal to save the world and colonize Mars. His popular reputation got a lesson for everyone; so, let’s take a look on some of his successful investment strategies since then.
Clear sense of motivation-making the first $1.5 billion
Musk received $22 million after the sale of his first online company, Zip 2. He was only 28 years old by then. Unlike most of us, Elon responded by investing half of the returns into yet another venture, X.Com. He really wanted to focus on the new technology of transacting online through email. They later joined hands with a competitor called Confinity. PayPal emerged following the subsequent merge which started the online money transfer process. Nonetheless, the founders of Confinity fired Elon after a series of disagreements, and renamed the company PayPal. In 2002, PayPal was sold to eBay for $1.5 billion.
To that end in 2004, Elon became the chairman of Tesla Motors, Inc. (TSLA), where he has since invested to finance the company’s rounds. In 2006, he invested heavily on one of the country’s largest installers of home solar panels: SolarCity Corporation- founded by his two cousins. Tesla closed at $23.89, on its first day of trading in mid-2012. By 2013, the stock had hit $158.88. Yes! That’s a more than 564% gain with only one Musk investment. Musk’s views entrepreneurship as a means to catalyze world-revolutionary innovations.
The chart below shows Musk’s “Investing Account” over time. You can see how he invested all the capital gains over the ten years period. It is worth noting that he has not got any significant exit returns from any of the three companies: SpaceX, SolarCity, and Tesla. SpaceX remains a private company; at SolarCity’s IPO, Musk sold zero stock, lastly, at Tesla’s IPO, his capital gains amounted to $15 million. By (2017), he had not reduced his net share worth in Tesla Company.
In 2013, Tesla had earned Musk’s $2.1 billion in just six months, the same year. He went ahead and made yet another investment growing his proceeds by an extra $766 million. This was solar financing company SolarCity. In February 2013, Musk 20.8 million shares in SolarCity were worth over $1.5 billion.
SolarCity manufactures and distributes solar-powered energy systems. It also reviews and constructs electric car charging stations. In mid-2015, they started a partnership to integrate Tesla batteries into the solar-battery backup system.
Unlike PayPal, SpaceX is a private company and a bit more difficult to value. Nonetheless, in August 2017 the private financing lifted the company’s net worth to around $21.5 billion. Elon still owns a controlling interest, meaning his share capital is worth around $100 million or more. Musk is expected to earn much more if SpaceX will ever go public.
SpaceX has made space trips exciting, and Musk remain open on social media with the company’s mission to drive space technology forward. On February, 2018, Musk sent to space, the falcon heavy rocket. Previously, he announced that if everything went well in accordance to the plan with the falcon heavy rocket, next, he would be on a mission to send Tesla Roadster to mars. He also made it clear, that he intends to take not only cars, but humans to Mars by 2025.
The Boring Company-Hyperlooping
In late 2016, Musk founded the “boring company”. The basic idea behind tunnel transport is that is to decongest the traffic within cities. Hyperloop would be immune to weather, environment friendly, would never crash, and would be as two times faster than an airplane. “Why travel above ground when there’s a lot of unused room beneath us.
The Boring Company, which has embarked on projects in Chicago, Los Angeles and the East Coast will be the critical to unlocking one of the Musk’s passions, the hyperloop travel. Like any other entrepreneur, Mask started selling hats and managed to raise over $480,000. Later he begun selling flametower; the next branded company product. Flamethrower netted the company over $7.5 million in a few days.
Hyperloop is known to many as a futuristic moving system that can transport you from California to New York to in just 30 minutes, many people anticipated impatiently on that Monday afternoon to hear more about this dream. It would require less energy and would be far much cheaper than driving a car.