By Eliza Haverstock
What a year for Elon Musk! When the clock turned 2021 of “social distances”, the CEO of Tesla and SpaceX was worth about $ 155 billion. About a year later, his fortune reaches unimaginable heights. On December 17, the 50-year-old Musk was worth $ 245.1 billion – that is, as of January 1, he added $ 90 billion to his value. In two years, his fortune has skyrocketed by $ 200 billion. In 2020, it earned more than $ 110 billion; record annual profit, according to Forbes.
Main source; Tesla’s share price, which although considered too high by some analysts, continued the rally. Tesla has strengthened by 32% since the beginning of the year until December 17. In early November, Musk’s value broke the $ 300 billion mark for the first time, and the 50-year-old CEO became the richest man of all time.
Tesla has fallen 24% from its November 4 high as Musk sold millions of shares he held, and announced via Twitter his thoughts on a possible resignation.
“2021 was a crossroads for Tesla: competitors were flying in from everywhere, and the company had to deal with a chip shortage. In the meantime, the stock was coming from a year of highs,” said Dan Ives, CEO and analyst at Wedbush. “And yet, despite the adversity, Tesla” got it clean. ”
The year was also a milestone for SpaceX. This fall, the aerospace technology company sent the first crew of “amateur astronauts” into space; its valuation on the secondary market exceeded $ 100 billion from $ 74 billion in February. (The value of Musk’s stake in SpaceX is estimated at $ 32 million.) In addition, in 2021 Musk sold six of his California mansions to move into a detached 37-square-foot home. in Texas, while his rumored separation from pop star Grimes made him sad. And of course, he did not miss the… paradoxical tweets, with which he trolled the markets.
Let’s take a look at the highlights of Elon Musk’s “frantic” 2021:
“Regulatory troubles” with China
The crisis in relations between Musk and Chinese regulators “cast its shadow” on Tesla shares in the first half of 2021, says Ives. China – a country where Tesla has a plant – is a profitable market for the company: about ¼ of Tesla’s total revenue in the 9 months came from, according to the third quarter financial results. This year, however, Beijing has imposed strict restrictive regulations on tech “players” operating in the country regarding data collection and transfer across borders. This development threatened to “block” Tesla’s research and development projects, as the automaker collects user data – through cameras and sensors – to improve autonomous driving systems. In addition, he was confronted with checks, as a protester at the Shanghai Auto Show climbed to the roof of a Model3 and complained of malfunctions in the vehicle’s braking system.
The “maneuver” came in September: speaking at the annual World Internet Conference in China, Musk assured government officials that Tesla had pledged to expand its operations in the country. “We are working with regulators to find the best possible solution for data security,” Musk said, pointing to a new data center set up by the auto industry in China to store the collected “personal data” and not transfer it outside of China. territory.
According to Ives, “if Musk had not played ‘cool professionally’ with China, he would not have come to power, nor would Tesla be where he is today.”
Lack of chips
Semiconductors play a key role in the production of new generation cars: they are used in infotainment systems, in the engine and in steering and braking systems. Disruptions in the supply chain caused a shortage of microelectronics components in 2021, affecting key automakers such as General Motors and Ford – however, according to Ives, Tesla overcame the crisis almost unscathed.
This is because Elon Musk’s company has been producing chips in-house for years, using a new technology called silicon carbide, which reduces its dependence on pure silicon. As a result, the chip shortage did not change Tesla’s production targets, even though the plant in Fremont, California, shut down for two days last February due to a “shortage of spare parts,” as Elon Musk said at the time, without elaborating. .
Tesla’s value jumped over 1 trillion. dollars
The Tesla stock picked up in October when Hertz has announced that it is buying 100,000 vehicles from Musk’s company for its fleet of rental cars, for $ 4.2 billion, according to information. Following this news, Tesla’s capitalization surpassed that for the first time 1 trillion dollars and Musk became the richest man of all time with a net worth of over $ 300 billion.
As of December 17, its value is estimated at $ 245.1 billion. Musk remains the richest man in the world followed by Amazon founder Jeff Bezos, French fashion mogul Bernard Arnault and Microsoft founder Bill Gates.
SpaceX made history
Not only Musk’s fortune but also his space achievements reached unimaginable heights. In mid-September, SpaceX launched the first crew in the world consisting exclusively of ordinary citizens, another important step for the fledgling space tourism industry. The 4-member crew, which also included billionaire Jared Isaacson, spent three days orbiting the Earth.
Liftoff of @Inspiration4X! Go Falcon 9! Go Dragon! pic.twitter.com/NhRXkD4IWg
— SpaceX (@SpaceX) September 16, 2021
The crew of #Inspiration4 is go for launch. pic.twitter.com/xou4rJJnjp
— Inspiration4 (@inspiration4x) September 15, 2021
The crew of #Inspiration4 is go for launch. pic.twitter.com/xou4rJJnjp
— Inspiration4 (@inspiration4x) September 15, 2021
It was a major milestone in the race between three billionaires (Elon Musk, Jeff Bezos and Richard Branson) to conquer space. And Musk may not have traveled into space himself, but his competitors did. Bezos boarded a BlueOrigin rocket launched in July, a week after Branson joined a similar Virgin Galactic mission. (Musk has booked a future trip to Virgin Galactic space, though no exact date has been set yet).
The serial with stock sales
On November 6, Musk surprised the business world posting a poll on Twitter, in which he asked his followers if he should sell 10% of the shares he has in Tesla. In the past, Musk had sold Tesla shares twice more: in 2010 and 2016. Two days later, the CEO of the automaker began selling shares and exercising options that expired in August 2022. By December 13, he had sell Tesla shares worth about $ 13 billion. Forbes estimates it could pay $ 8.3 billion in taxes as a result of these moves, making it possibly the largest taxpayer in the United States (Musk claimed on Twitter that he would “pay more taxes this year than any other American in history”). ).
“Of course, it was also a communication move,” Ives commented on Musk’s Twitter poll. “If it started selling unannounced, the stock would collapse.”
Forbes estimates that by December 13, Musk had raised about $ 4.4 billion in cash (after taxes) from stock sales.
Investing in Texas
In 2021 Musk dropped his money in Texas. By June, he had sold six of his seven California mansions and set up shop in his last home. Where does he live at the moment? In a “folding, prefabricated” home of about 37 square meters, in the size of a studio, in Boca Chica, Texas, near the facilities where SpaceX builds Starship rockets.
Following controversy with California lawmakers over safety regulations for covid-19 at Tesla’s Fremont plant, the billionaire announced plans for a Tesla headquarters in October 2021 at the annual General Meeting of Shareholders. from Palo Alto to Austin, Texas. Musk took a more diplomatic approach to the Convention, citing high California housing costs and time-consuming travel as key reasons for his decision. The relocation was completed in early December, but it is not yet clear how many Tesla employees will be relocated to Austin or how many new jobs will be created there.
Another billionaire split
There have been changes in Musk’s personal life as well. In late September, he reportedly broke up with singer Grimes, his partner of three years, just weeks after attending the Met Gala. In May 2020 the couple had a son, whom they named X Æ A-Xii.
What the new year brings
The holiday season usually “mobilizes” the feelings of charity of billionaires; however, for the richest man in the world, the offer does not seem to be a priority for the new year. Musk co-founded the Giving Pledge initiative – in a promise to donate at least half of his fortune to charity – about a decade ago. Forbes estimates that so far Musk has donated less than 1% of his fortune to charity.
Ives predicts that 2022 will bring more demand for electric vehicles and more competition, so Tesla will focus on increasing its production capacity at its Berlin and Austin plants. Tesla could increase its total production to 2 million cars a year, from about one million today, Ives claims. By comparison, Toyota, GM and Ford sell more than 4 million vehicles each year, with a very small percentage of sales coming from electric cars.
“We’re watching a ‘tech’ electric vehicle race, ‘” Ies said.
So 2022 is expected to be another exciting year for Musk – if he does not “fold”. On December 9, he wrote on Twitter that he was “thinking of quitting his job and becoming a full-time influencer.” Of course, the richest man in the world has billions of reasons not to leave the lot, other than his passion for changing the world: Tesla’s Musk’s pay package includes another $ 36 million worth of options, worth about $ 32 billion. if he manages to keep investors satisfied and the stock price at high levels in the midst of forces that… he himself can not control.
Read also:
* E. Musk: $ 10 billion long-term investment in Tesla plant in Texas
* Elon Musk: Lost $ 15 billion in one day
* Elon Musk: I will pay over $ 11 billion in taxes this year
* The 10 most profitable billionaires of 2021
.
Source: Forbes
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
