How Elon Musk made $160bn in a month, and what it can teach you
Elon Musk spent October rocketing ahead in the ranks of the world’s richest people, and you can learn from his success.
In just one month, Elon Musk’s net worth has jumped by $160 billion – more than the combined fortune of Australia’s four richest people.
The founder of Tesla and SpaceX is today worth $US315bn ($418bn), according to Forbes.com, and there’s plenty we can learn from him to shape our own money mindset and habits.
Musk’s latest wealth surge reflects a new deal to supply 100,000 Tesla cars to Hertz, plus some handy stock option activity.
Some say he’s going to become the world’s first trillionaire, and his wealth dwarfs that of Australia’s richest. Forbes.com says Aussie software giant Atlassian’s co-founders Mike Cannon-Brookes and Scott Farquhar are now worth about $34 billion each, followed by mining magnates Gina Rinehart ($31bn) and Andrew Forrest ($18bn).
I reckon Musk can reach $1 trillion within a decade or so, given his businesses focus on some of the world’s biggest growth areas:
• Electric vehicles, with Tesla a leader as countries start phasing out petrol-powered vehicles.
• Renewable energy systems and storage for homes and industry, including giant battery projects in Australia.
• Space travel including taxiing astronauts for NASA, space tourism, and preparing to visit the moon and Mars.
Many stockmarket analysts say Tesla shares are overvalued, having climbed 20 times in price in just over two years. The current price is based on projected 2030 profits, not 2022 profits, they say.
Investors obviously see an X-factor that takes Tesla beyond normal valuations, and an X-factor in Musk.
Aussie investors can buy Tesla shares through stockbrokers and online platforms, but can also learn some valuable lessons from Musk’s approach to business.
PASSION AND HARD WORK
Musk has both in spades, reportedly camping out at his factories and sleeping under his desk to achieve his business goals.
You won’t need to emulate those antics, but a little passion and researching some financial strategies for yourself will go a long way.
THINKING BIG
Like, really big. Like sending humans to live on another planet big. A saying I heard when younger was “shoot for the moon – you may not reach it but you won’t come up with a handful of mud either”. Well, Musk’s shooting for Mars, possibly by the end of the decade.
Don’t let naysayers deter you from your financial goals. Set stretch targets, then work out what you need to do to reach them.
LEARN FROM MISTAKES
People who have followed SpaceX – which is now sending astronauts to the International Space Station and space tourists on laps of Earth – would remember the early embarrassing videos of its test rockets crashing and exploding on landing platforms in the ocean.
These were learning experiences on the way to SpaceX becoming a $100 billion global leader. Treat every money mistake as an opportunity to improve yourself and you’ll have fewer regrets.
TAKE RISKS
Whether it’s travelling to Mars, the moon, or expanding a real estate portfolio from one to two properties by taking on a big chunk of bank debt, always remember than rewards come to those who accept risk.
Understand the risks, manage them, be prepared to lose sometimes, and don’t bet everything on one risky decision.
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