Elon Musk success story| How He Become World’s Richest Person?
2020 is a good year for Elon Musk
I am talking about Elon Musk who became the world’s richest
man on 7th January 2021.
At the beginning of 2020, his net worth was $27 billion
which made him the world’s 37th richest person.
But in one year, his net worth increased to more than $190
billion.
And what is interesting is that he did not even do anything
special this year.
He did special … he does special every year. He is quite a
hard-working person but I mean that he did not do anything extra or different
in 2020 that he did not do in 2019, 2018, 2017 or 2016
Had he not done anything at all this year, even then The chances of him becoming as rich as he has become were quite high.
How did it become possible?
Let’s get to know the story of Elon Musk in this article.
Think about it, when you’re a billionaire, then how do your
money?
It isn’t that you do some work and you get a salary in
return and you keep saving that salary in your bank account until it becomes
billions of dollars.
This is next to impossible because one billion is such a big an amount that earning money through normal ways such that you earn one billion is
next to impossible.
What happens in most
cases is that billionaires are owners of some valuable company They are the
owner of such a company which has great value in the world.
For example, Mark Zuckerberg is the owner of Facebook, Jeff
Bezos the owner of Amazon, Bill Gates is the owner of Microsoft similarly, Elon
Musk is the owner of Tesla which is a company that manufactures electric cars.
The wealth of all these people is interlinked with their
companies.
In fact, it is to such an extent that these people can both
earn and lose billions of dollars in a day depending upon the current value of
their company in the share market.
If their company’s share price climbs up, then they become
rich instantly if the share price of their company falls then they can lose
billions of dollars instantly.
Something similar happened with tesla in 2020, Tesla’s stock price increased 720% in a year and this is the main reason for Elon Musk becoming the world’s richest man.
What may surprise you is that Elon Musk did not found Tesla!
Tesla was founded in 2003 by two people named Martin and
Mark.
Elon Musk joined this company in 2004 by investing $30
million. Only after 2008, Elon Musk became Tesla’s CEO 2009, this company
was going through financial problems therefore he decided to list the company in
the stock market so that the public is able to invest and the company is able
to recover.
In 2010 this company was listed in the stock market. And at
that time when it happened, the price of one share of Tesla was $17. On 14th
January 2021, the price of its one share was $854.
Today, the market capitalization of this company has
surprised $800 billion due to which this has become the fifth most valuable
company in the world After Apple, Microsoft, Amazon, and Alphabet.
Alphabet the company that owns Google.
Elon Musk owns 20% stake in Tesla and this is how his wealth
has increased so much.
Before talking more about this, let’s get to know Elon Musk’s personal story.
He was born in 1971 in South Africa. His mother was American
and his father was South African it is said that from a very young age he
started using computers. At the age of 10, he was given his first computer and
he learned to code himself.
At the age of 12, he coded a computer game which he sold for
$500 dollars. So this was his first earring which he earned at the age of 12.
In 1989, he went to Canada and then studied at Pennsylvania
university in the USA.
He believes three things that have influenced him most were the internet, renewable energy, and space travel. In 1995, you can say that he got his
first break. He found a company called ZIP2 along with his brother which was
basically a telephone directory much like yellow pages. And this company was
sold off at quite a high price. After that, he found a financial service company
named X.com which merged with another company in 2000 to form PayPal.
In 2001, Elon Musk become CEO and chairman of PayPal after
which it was acquired by eBay for $1.5 billion. So at this point in time, Elon
Musk had already become a billionaire. After this, he focused on his passions.
He invests more than $100 million in founding a company named SpaceX.
The main object of the company to send humans to Mars and to
establish a colony there. In 2020, SpaceX became the first private company
that had a person to space. By 2025, SpaceX plans to send the first human being to
mars. Let’s see how successful this turns out to be. But due to such a big plan,
ideas and vision, Elon Musk is often called real-life Tony Stark.
He has highlighted the fact time and again that you don’t
need a college degree if want to make a good career. He tweeted, “you still
don’t need a degree to work with Elon Musk”
Elon Musk doesn’t value a degree much but rather he values exceptional
ability. If someone can show that he can work efficiently then this person is more
valuable to him as compared to a person who can only show his degree.
A lot is to learn from Elon Musk’s story of how you can
succeed only on the basis of passions, skill, and hard work.
If you have knowledge and skills, then you don’t even need a
degree.
what is the wealth of Elon musk?
I said that for a billionaire, his wealth is associated with
a company in such a way. That When the share price goes up and down then the
net worth of the billionaire will also go up-down.
And the money is often stuck in that company itself. To be
able to withdraw and access that money is quite difficult sometimes. The value
of shares of a company increases when there is a higher demand for it in the
market if the public thinks that this company will be successful then they
invest in that company resulting in rising in its share price.
Normally, this happens when the future potential of the
company looks good. What is happening in the future. Many developed countries
want to reduce the number of petrol and diesel vehicles so as to reduce
pollution and carbon emissions. More and more countries want to switch to
electric cars.
Tesla is one of the most popular electric car brands so
people can see that in the coming 10 years, Tesla can become quite popular. Their
cars will be sold worldwide which is why people investing in them.
Although, some feel that Tesla is overvalued. We are agreeing
Tesla is a good company and its future looks good but so many people have
invested so much of their money is quite too much.
In May 2020, Elon Musk has said himself that the share price
of Tesla is quite too much.
He also warned his employees not to hope too much because
the share price can fall down as well. But on the other hand, some people
believe that the share price of Tesla can rise more in the coming years.
They say that Tesla’s stock can increase 3 times more. If this
happens, if Tesla’s stock price increase 5 times. As of now, the net worth of
Elon Musk is around 200 billion dollars. Then Elon Musk’s net worth which is
currently around $200 billion will reach $1000 billion dollars. It means he
can become the world’s first trillionaire.
A lot of people believe that this is definitely possible if
Tesla’s stock rises so much then Elon Musk will become a trillionaire.
What is interesting
is that Elon Musk is not too attached to money.
He says that he is not interested in materialistic things
such as buying a private jet or island with so much money. He looks at money as
less of a medium of exchange and store of value but as a means to an end. He looks
at it like a financial tool that is quite useful to achieve one’s goal.
He also said that half of his money will be used to
solve the problem of the earth and the rest half will be used for the continuation
of life for all the species.
So far this is the interesting story of Elon Musk. Today, he
is not the richest person anymore.
Because as I told you share price fluctuates so much that it came down a little bit and Jeff Bezos crossed him yet again. Elon Musk has a wealth of $179 billion while Jeff Bezos is at $182 billion
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