Key Points:

• Driven mostly by Tesla (NASDAQ: TSLA) and SpaceX, Elon Musk’s net worth has skyrocketed above $330 billion
• This run can continue as artificial intelligence company XAI becomes more important, and and self-driving cars gain adoption
• Tesla could accelerate with possible federal clearance of self-driving cars.
• As good as Tesla has been for Musk, Nvidia has been even better. That’s why the smart money is looking at ‘The Next Nvidia’ stocks for incredible riches. Click here to learn more. 

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Transcript:

[00:00:00] Doug: So, Elon Musk’s net worth went above 330 billion on the Bloomberg billionaires list today, which I’m pretty sure is a record. Now people say that he’s going to eventually get to a trillion dollars, which seems absurd, but the fact of the matter is, is that it’s not that long ago that he was only at a hundred billion.

[00:00:23] Doug: So he’s gaining on, I mean, what’s the first thing that you think is in that mix, if you said, well, where’s the money come from?

[00:00:30] Lee: Well, obviously, and we wrote about this and our readers liked it. The only stock he owns publicly traded stock is Tesla. It’s skyrocketed since the election and his kind of jumping on the, on the mega bandwagon.

[00:00:47] Lee: So that’s been a huge part of it, but also the SpaceX holdings are going up in value. And the other things he has are going up in value. And most importantly, Musk AI is probably on the way. And so is Musk AI browser.

[00:01:03] Doug: Well, that’s the reason I think, so here’s some of the math. He owns about 15 percent of Tesla’s shares and Tesla’s got a market cap of 1.

[00:01:13] Doug: 1 trillion. So, that’s not that hard to figure out. So he owns about 50 percent of SpaceX, right? He just did a, they just did a private raise. The valuation was 255 billion. He owns 50 percent of it. He’s also, yeah, he’s got, but this is interesting. He has a controlling interest in space X because there’s a second class of stock, like you have in some public companies.

[00:01:44] Doug: So he has control of space X, even though, in theory, people could. Could out voting, but there’s another thing that people don’t look at. And that is, there’s this thing called XAI, which is an open AI competitor. They just raised, 6 billion at a valuation of 50 billion. then it goes up from there.

[00:02:07] Doug: The interesting thing though, that you’re talking about is, is that this could still go way, way up.

[00:02:14] Lee: Yeah, I think so. And, I think even if they boot the tax credits for EVs. Do you think that’s really going to stop people that really want to have one from buying one?

[00:02:28] Doug: I think there’s two pieces to it. The first one is if you’re, if you own 50 percent of the market, the tax credits are probably going to hurt the little guys trying to chase you.

[00:02:39] Lee: Yeah.

[00:02:40] Doug: Right. Also, tax credits don’t apply to cars that where a certain amount of them is manufactured to the parts outside the United States. So correct. But I believe that Musk is going to be able to convince the new administration to approve self driving cars.

[00:02:58] Doug: On a national basis. Right now, the problem with getting into that business is it’s in some cases it’s done by city.

[00:03:06] Lee: Yes.

[00:03:06] Doug: In other cases it’s done by state. Right. So Tesla could have a multi year march towards getting its AI driving technology approved for public use. So think about it. If the federal government makes a decision and says, this is now a federal matter and they have approved Tesla for that, he now will be able to sell a self driving Tesla in every single state since they’re all EVs that it, think of what that does for the, not just Tesla stock, but the whole EV industry, the adoption would accelerate tremendously because people want the self driving feature and you have to have an EV car to do it.

[00:03:48] Lee: Well, and And in the long run, when you look at things, especially when the self driving is down to a, a science and there’s not any more accidents or things of that nature, think, think of what that just does for society. Think about that. How many drunk driving deaths are there? How many drunk driving accidents on there?

[00:04:08] Lee: You get in there, you tell the car, go home and you don’t have to worry about any of that. And, that’s a societal issue that I think that. The government could very well weigh so

[00:04:21] Doug: Look, I know people have different price targets on, on Tesla, and some of them are much, much higher than they are right now. The CEO at NVIDIA (NASDAQ: NVDA) has said that Musk is unbelievably far ahead of everybody else when it comes to AI development and the amount of data that they’ve gathered from the Tesla’s have been driving around the country for so long.

[00:04:41] Doug: So if you said to me that Tesla doubles, I’d say. I’m not gonna fight you about that. I’m not gonna vote against that. And that adds another 150 billion to his net worth. Now let’s move over to SpaceX. Okay. SpaceX is very close to cornering the market for putting anything in space. Astronauts satellites his own low flying so that people don’t talk much about the fact that he’s gonna own the global internet with this low lying satellites. I mean, you’ll be able to get internet in the middle of Africa. That’s his.

[00:05:17] Lee: Well. Yeah. And think of the, think of the ramifications for just every rural area, just the United States alone, let alone every place else.

[00:05:26] Doug: Right, right. So he’s got that business. The more of this space business he owns, the more valuable SpaceX becomes.

[00:05:34] Doug: And look, he now has an AI company that arguably could end up competing with open AI and the valuation of that company. I mean, let’s get, let’s move over to Nvidia for a second and look how fast it’s market cap. If, if that’s a good. proxy for what can happen to an incredibly successful, AI company, his AI company could double or triple in value in the next 12 to 18 months.

[00:06:02] Doug: So now Musk is over 500 billion and maybe six or 700. So he’s, his, his net worth could triple in the next five years.

[00:06:16] Lee: And don’t let anybody tell you couldn’t look at the price of a Bitcoin. This time of year ago it was 20 grand. It’s touching 100. Things can move up fast in this day and age.

[00:06:26] Doug: It is. It is.

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