Do you know why Elon Musk has become the richest person in the world?
It is official, Elon Musk has become the world's richest person, as his net worth crossed $185bn (£136bn). The Tesla and SpaceX entrepreneur was pushed into the top slot after Tesla's share price increased. What’s more, he has claimed the top spot from Amazon founder Jeff Bezos, who had held it since 2017. Here is providing a few more insights, explaining why Musk has finally managed to overtake Bezos in the race of wealth.
1. Elon and his Electric Car company rapid growth:
Mr Musk's electric car company Tesla has surged in value this year, hitting a market value of $700bn (£516bn) for the first time on Wednesday. This means that this car company is worth more than Toyota, Volkswagen, Hyundai, GM and Ford combined. Furthermore, Elon reacted to this news in signature style on Twitter replying to a follower sharing the news with the remark "how strange".
2. Elon, and his unique perspective on his personal wealth:
Elon who is very active on social media has frequently shared his out-of-the-box view on his wealth. An old tweet reading "About half my money is intended to help problems on Earth, and half to help establish a self-sustaining city on Mars to ensure continuation of life (of all species) in case Earth gets hit by a meteor like the dinosaurs or WW3 happens and we destroy ourselves,". A clear indicator that he views his personal income as a means to an end, and not the end.
3. Change in the Political Climate in America may bring in more fortune for Elon:
The change in the political weather in the US means that the tycoon's fortunes in the future certainly seems to be bright. This is mainly because Democrats will have control of the US Senate in the forthcoming session, and a blue senate is more likely to support a green-driven business agenda, which could in turn prove to be a total game-changer for his electric car company Tesla and the overall electric vehicle sector. In addition, the possibility of electric vehicle tax credits being made available by the new US government, would benefit only Tesla who continues to have an iron grip on the market today.
4. The ‘Hand of Jeff’ in the rise of Elon and the fall of Bezos:
In the last few years along with Elon, Amazon CEO Jeff Bezos has also seen his fortune significantly increase. In 2020, the arrival of coronavirus pandemic, has meant that Amazon and Bezos have benefited from stronger demand for both its online store and cloud computing services. However, he gave a 4% stake in the business to his ex-wife MacKenzie Scott after they split, which in turn has help Musk become the richest man this calendar year. Additionally, the threat of regulation has meant Amazon's stock has not risen as high as it might otherwise have done.
It is a fact that Tesla's share price has increased more than seven-fold in the past year due to COVID-19 pandemic. This means Musk will have to show within the next five years that, Tesla can make more profits than just about the whole of the rest of the motor industry combined to justify the valuation. Whether he does it or not, only time can tell.