Investing

Elon Musk Increased His Wealth by $24 Billion This Year

Ian Cooper

Published: October 17, 2024 10:08 am

With $246.8 billion, Elon Musk is the richest person in the world.

In 2020, he was worth about $28.5 billion. By the end of that year, he was worth $167 billion. Now worth well over $246 billion, he may be on his way to becoming the world’s first trillionaire by the time 2027 rolls around, according to CNBC.

Key Points About This Article: 

• Billionaire Elon Musk could be the world’s first trillionaire by 2027.
• Musk created most of his fortune by investing heavily in Tesla and SpaceX.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

How did Elon Musk Build His Fortune?

One of the biggest reasons for that has been the monumental rally in shares of Tesla (NASDAQ:TSLA), which ran from about $1.28 to a recent high of $220.84. The stock was split twice since 2020. The first split was a 5:1 in August 2020. The second split was in August 2022 with a 3:1 stock split, which has been incredible for Elon Musk, who owns just over 715 million shares of the stock as of July 2024.

While it’s true a good chunk of Musk’s wealth is from Tesla, he was making millions long before the electric vehicle stock took off. In 1999, for example, he made $12 million from an investment during the dot-com boom. He made another $100 million in 2002 even during a disastrous dot-com crash. Then he used $100 million to launch SpaceX in 2002 and became a major shareholder in Tesla by 2004.

Today, Tesla and SpaceX combined are worth just over $900 billion, which accounts for a majority of Musk’s $246.9 billion fortune.

Elon Musk has also been actively involved with xAI, which deploys artificial intelligence solutions; Neuralink, a neurotechnology company that developed implantable brain-computer interfaces; SolarCity, which provides solar energy services.

How to Invest Just Like the Multi-Billionaire

If you want to invest like Elon Musk, look into companies with long-term growth potential and disruptive technologies, as we’re seeing with electric vehicles, renewable energy and space. Look at companies that could disrupt life as we know it, as we’ve also seen with artificial intelligence and machine learning.

You can also buy shares of Tesla, especially on pullbacks.  In fact, after dipping from about $265 to $217, the stock appears to have caught strong support again.

You also want to make sure you always remain committed, as Elon Musk has been with Tesla. As the billionaire has said, “I don’t think it’s a good idea to plan to sell a company.” That longer-term perspective allows Elon Musk to weather volatility and focus on the long-term story.

Elon Musk’s Take on Investing

We can still invest like the billionaire and learn from him.

For example, don’t be afraid to take calculated risks. “When something is important enough, you do it even if the odds are not in your favor,” he says.

Never panic in the market. “Don’t panic when the market does. This will serve you well in the long run.” Be able to accept risk. “There’s a tremendous bias against taking risks. Failure is an option here.” He also says, “Good ideas are always crazy until they’re not.”

Other key quotes to keep in mind, especially if you’re looking for motivation, include:

• “Persistence is very important. You should not give up unless you are forced to give up.”
• “I think it is possible for ordinary people to choose to be extraordinary.”
• “When something is important enough, you do it even if the odds are not in your favor.”
• “Pay attention to negative feedback and solicit it, particularly from friends. Hardly anyone does that, and it’s incredibly helpful.”
• “When Henry Ford made cheap, reliable cars, people said, ‘Nah, what’s wrong with a horse?’ That was a huge bet he made, and it worked.”
• “It’s OK to have your eggs in one basket as long as you control what happens to that basket.”

One of my favorite Musk quotes is this one.

I always invest my own money in the companies that I create,” Musk has said. “I don’t believe in the whole thing of just using other people’s money. I don’t think that’s right. I’m not going to ask other people to invest in something if I’m not prepared to do so myself.

-Elon Musk

In short, are you willing to put your money where your mouth is?  Do you believe in an idea so much that you’re willing to do that first?