The Richest Man On Earth (and soon Mars...)

jeff bezos has held his title as the world's richest man nearly every day for the past three years however since the beginning of january 2021 he's been locked in a fierce back and forth battle with none other than elon musk the man whose fortune is built on self-driving cars rockets brain computer interfaces and soon mars today we're going to take a look at how elon has managed to become the world's richest person and how someday he may not just be the richest man on earth but also on mars as well less than a year ago i made a video asking the question will elon musk be the world's first trillionaire at the time elon had a net worth of 29 billion dollars which is almost laughable now at the time of writing this video less than a year later elon's net worth is currently at a cool 179.2 billion dollars 2020 will go down in history as a rough year for thousands of companies but for elon and his companies it was anything but in 2020 while the corona virus was bringing many wealthy individuals to their knees elon's wealth more than quinn tupled increasing by an unbelievable 545 he started the year as the world's 35th richest person and somehow began 2021 as the world's richest marking the fastest rise to the top of the list in history surpassing at least two billionaires per month it was on january 6 2021 that elon became the world's wealthiest person with a net worth of 189.7 billion dollars surpassing jeff bezos whose net worth was around 184 billion at the time when we talk about hundreds of billions of dollars it can be nearly impossible to visualize for reference his fortune which reached 189.7 billion dollars is higher than the gdp of half of the world's countries if he himself was a country he would be the 53rd most wealthy right below new zealand on the list since reaching that 189 billion mark there has been an almost daily battle between jeff and elon for the title on january 13th however jeff bezos reclaimed the throne after amazon's stock rose 1.5 that simple 1.5 increase added 2.4 billion dollars to jeff's net worth and it's made me realize that i probably need to take a look at my own stocks still that 2.4 billion dollar increase only put him 800 million dollars ahead of elon so it's no surprise that the following day january 14th elon once again became the world's richest person when amazon's stock fell by 1.2 percent over the next few weeks there's no doubt they will be neck and neck for the title but how did this even happen for three years no billionaire could even come close to touching bezos how did the man from south africa who used to earn an income throwing house parties surpassed the ceo of amazon to answer that question we have to take a look at tesla spacex and the boring company and see what they were up to in 2020 back in december bloomberg placed elon's net worth at around 158 billion dollars it was estimated that 110 billion around 70 percent of that worth could be attributed to tesla stock and options and 18.7 billion was from spacex tesla was founded way back in 2003 with 7.5 million dollars in funding and soon elon joined contributing another 6.5 million dollars meaning their fledgling company had around 14 million dollars in funding to get themselves off the ground in just 18 short years tesla has gone from a small unknown company to the most valuable car company in the world with a market value of 700 billion dollars surpassing the likes of gm ford toyota volkswagen and hyundai combined in 2020 alone tesla had a 689 increase in value and truly that rise won't be stopping anytime soon tesla's reach is bound to expand in the united states alone within the next few years as climate change initiatives are put into place with the new democratic leadership it's reasonable to estimate that a one-year 689 percent increase may pale in comparison to what 2021 or 2022 will bring for tesla elon with an 18 stake in the company reaped the rewards of this increase in value heavily and though he reportedly earns the bare minimum for a salary as the ceo of tesla that doesn't mean he was being underpaid not even in the slightest elon's earnings from tesla are performance based and boy did tesla perform elon is awarded stock options when tesla hits increasingly challenging performance stock and revenue milestones so even though he's getting paid a bare minimum salary in 2019 he walked away with 595.3 million dollars though the numbers haven't yet been released for 2020 there's no doubt the amount he's earned will be even more and with tesla skyrocketing in value year by year the amount elon owns is sure to skyrocket right alongside it though tesla is elon's primary cash cow a well-cash car that's not the only way he's amassed his vast fortune in fact some of the other companies he's at the helm of may soon be worth even more than tesla take spacex for example the current worth of spacex is estimated to hover somewhere around 46 billion dollars but at the tail end of 2020 bloomberg reported estimates that the company's value would soon soar to 100 billion dollars and when you look at the year that they've had it's easy to see why spacex was started by elon in 2002 and according to him was started in order to reduce space transportation costs and allow humans to colonize mars in 2016 elon unveiled his plan for the colonization of mars the architecture and technology he presented would theoretically be able to get one million people on mars within a 50-100 year period and though elon has garnered a lot of grief for his comments on mars specifically his intentions to nuke mars he has moved forward with his plans using spacex toward the tail end of 2020 spacex launched a prototype of the starship a ship that is intended to take people from earth to mars the prototype came back to earth in bits and pieces after a large explosion but that didn't dampen elon's enthusiasm i mean after all one little setback is hardly something to sweat over when you've been largely successful in 2020 spacex averaged one launch into space every two weeks truly it was a good year to get off world for more reasons than one in total they had 26 successful launches meaning even in the face of the coronavirus they exceeded all previous year's launches by a substantial amount however it isn't just the colonization of mars that's put space x on many people's company to watch lists primarily it's starlink starlink is a satellite initiative intending to provide low-cost high-speed internet across the globe you know what all companies governments and people want and need in this day and age high-speed low-cost internet 14 of the 26 missions performed by spacex were done in support of starlink to date 950 starlink satellites have been launched into orbit with 900 of those still remaining in orbit it's important to note that only 3 300 operational satellites orbit around earth today meaning a large percentage of those are owned by spacex starlink already has an agreement with the fcc to launch 12 000 satellites into space and have recently fired paperwork to send an additional 30 000 it's reasonable to estimate that spacex's request will be approved since the fcc has already granted spacex 900 million dollars in subsidies to bring internet to rural areas in the us all of that to say there are some big things coming for spacex if the entirety of the world's internet was provided by spacex satellites it's nearly impossible to estimate how large their market value would rise and when you consider that elon himself owns 54 of spacex stock it's absolutely mind-blowing to consider how much space x could add to his fortune and while flying into space colonizing mars and making self-driving cars would be enough for most people for someone like elon that can get a bit boring hence the creation of his other company the boring company which is anything but the boring company which aims to create high-speed underground transportation has recently been hired by the las vegas convention center to create the lvcc loop an underground transportation tunnel around the convention center they were awarded 6.25 million dollars to work on the project but that's not the only tunnel they're digging in vegas in addition they were given permission to connect the convention center loop to the vegas loop another loop which will be fully funded by the boring company though the company won't charge a fare for entry or use of the tunnels they will earn quite a bit of money on advertising and that's just the start the boring company intends to create a tunnel stretching from seattle to l.a which much like the vegas loops will only be accessible by tesla cars and other electronic vehicles while it may not sound like the most profitable business if you've ever sat in la traffic you know people would cough up a pretty penny to be able to get around that with ease the entire system is estimated to earn five dollars for every one dollar spent and since elon owns ninety percent equity in the boring company he'll be quite set financially so there you have it how elon garnered his massive fortune and how by many estimates he'll be blowing by jeff bezos with ease in the next few years what do you think how long will he hold the title of the world's richest person and will he be the world's first trillionaire let me know what you think in the comments down below thanks for watching if you enjoyed the video make sure to drop a like and subscribe and as always i'm mr luxury pip pep to dooley do

Channel: Mr. Luxury

Views: 81,419

Rating: 4.9224925 out of 5

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Id: etDLNP1CVmM

Length: 11min 0sec (660 seconds)

Published: Sat Jan 23 2021