March 01, 2023

Elon Musk: Investing in the future [Infographic]

If there is any one entrepreneur today that embodies the future, it's Elon Musk. According to Valuewalk, this "self-made billionaire Elon Musk can seemingly do it all. At just 46, the entrepreneur has launched a number of successful companies, including Tesla, SpaceX, PayPal and the Boring Company and is now worth over an astonishing $20 billion."

Above: Tesla and SpaceX CEO Elon Musk (Flickr: Heisenberg Media)

Where does Musk invest his own money? The future. After selling PayPal and walking away with hundreds of millions of dollars, Musk took some big chances. Envisioning a future with electric cars, "Musk had invested heavily in Tesla Motors... [and] joined the board in 2004 after leading the company’s series A funding, and [he later] became CEO in 2008. By the age of 32, he had invested $70,000,000 into the company in a bid to develop, manufacture and sell high-performance, fully electric vehicles."

Above: The rapid growth of Musk's net worth over six years (Source: Toptal)

But Musk's investment in clean energy didn't end there: "Another notable investment is in SolarCity. Founded in 2006 by Elon’s cousins, SolarCity [became] one of the largest producers of solar panels in the world. While Musk only personally got involved when his company SpaceX bought $90 million worth of stock in the venture, his involvement took the company miles ahead to a point where he decided to acquire it all together, at an estimated $2.5-$3 billion through Tesla."

Above: A look back at Musk's first companies that inspired his bold investments into the future (Youtube: Futurism); Note: Tesla Model S has gotten even quicker, recently clocking 0-60 MPH at 2.28 seconds

Musk also invested more into the transportation sector via: "the Boring Company. The idea behind the Boring Company is to revolutionise the way Americans travel, by connecting nearby cities with tunnels underneath. The goal with The Boring Company is to reduce the cost of tunneling while also speeding up production. Musk has hopes that The Boring Company will be the key to unlocking hyperloop travel... To fund the project, Musk [even] started selling hats. On December 16, 2017, Musk announced he had sold 42,000 Boring Company hats."

Above: A chronological timeline of Musk’s investing activities, showing inflows and outflows (Source: Toptal)

The most out-of-this-world investment is SpaceX, "where Elon Musk has invested the most. The California-based rocket and spacecraft manufacturer was founded by Musk himself in 2002. The company, which was started with $100 million from the sale of PayPal, is now worth over $21 billion... The company has been a remarkable success, both financially and technologically, and has made space travel exciting again. At the end of last year, SpaceX had successfully landed 19 rockets and next steps are to take humans to Mars by 2024."

Above: Tracking Musk’s “Investing Account” over time by estimating his investments and proceeds (purely capital gains from exit events - not compensation) over the years (Source: Toptal)

Between electric cars, space travel, solar energy, and underground tunnels, Musk has accumulated billions with his bold plans to transform the future. Where will he invest next? Check out this infographic from RS Components for more...