SpaceX currently makes up less than 17 percent of Elon Musk’s more than $222 billion net worth and not Tesla, making it more likely he would hit trillionaire status very soon, according to a report compiled by Adam Jones, a business analyst at Morgan Stanley.
The report noted that with its infrastructure, earth observation and exploration capabilities, SpaceX is a multiple company in one.
“In a few years Elon is going to become a trillionaire and it is because he continues to build brands for the good of our climate hence he believes that in the future only those working for the good of their climate would be in the category of the richest,” Chamath Palihapitiya, a market analyst said.
SpaceX saw its valuation soar to over $100 billion last week as the company made an agreement to sell stock up to $755 million from company insiders.
The 33 percent share price jump which was acquired when the company raised nearly $1.2 billion makes the company the second most valuable private company after Bytedance of China.
Read also: Nigerian states face low infrastructure spend on weak revenues
The money raised by the company is to fund work on two capital projects Starship and Starlink.
While the latter is the company’s plan to build an interconnected internet network with thousands of satellites designed to deliver high-speed internet to people anywhere on the planet, starships are developing to launch people and cargo on missions to the moon and mars.
Elon’s Tesla whose shares price skyrocketed to $880 billion in January has recently seen him become the world’s richest man surpassing Jeff Bezos, Amazon founder who has been the richest man since 2017.
Some tech analysts still believe Tesla’s growth could make him reach the four comma figures.
The reasons behind Tesla’s growth according to insiders in the company states companies with environmentally friendly products could benefit more from the democratic controlling congress.
Tesla’s price per earning (PE) ration was at 1407.73 in January and although hit a low in June has soon found its way up at 471.59 and Palihapitiya has predicted the price will increase even more as people are more aware of the environment and climate change which would make more people consider the product and make Tesla one of the most sort after cars.
Creating clean energy and a more sustainable environment is one of the things that would be mostly rewarded by markets and individuals and if Elon keeps doing that, the value of Tesla could double or triple making him a trillionaire in a few years.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
