Morgan Stanley analyst believes Elon Musk will become a trillionaire thanks to SpaceX

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Elon Musk has had an extremely good week. He’s also had a very good year. Since the beginning of the year, Elon’s net worth has grown by more than $ 70 billion. As of this writing, Elon Musk’s net worth is $ 243 billion. He is by far the richest person in the world. He is $ 44 billion richer than Jeff Bezos’ net worth. At $ 243 billion, Elon is $ 10 billion richer than Bill Gates and Warren Buffett … COMBINED.

What makes his fortune soar? And could Elon become a trillionaire?

SpaceX’s valuation is now $ 100 billion

First, it was announced on Monday that some SpaceX insiders had sold their private shares valued at around $ 750 million through a secondary market share sale. The sellers sold their shares for $ 560 per share. The company’s last private fundraising round in February, the private share price was $ 410.99. At $ 560 per share, SpaceX’s new private valuation is $ 100 billion.

This makes SpaceX the second most valuable private company in the world behind TikTok’s parent company ByteDance. In its most recent round of private fundraising, ByteDance was valued at $ 140 billion.

According to a company filing last month, Elon owns around 43% of SpaceX. Therefore, its share of 43% after this round is around …

$ 43 billion

That percentage alone would be enough to make Elon one of the 35 richest people in the world.

When SpaceX raised money in August 2020, it was valued at $ 46 billion. At the time, Elon owned 48% of the company, which meant his stake was worth $ 22 billion. So the value of its SpaceX stock has doubled in just over a year.

Tesla shattered

Oh yeah, the OTHER company that controls Elon.

On Monday, Telsa’s share price closed at $ 870. That’s the highest since February and a nice turnaround after falling to the mid-$ 500 mark in May. At $ 870, Telsa was just $ 30 below its all-time high it hit in January 2020.

As of this writing, Telsa’s market capitalization is $ 855 billion.

According to the company’s most recent filing, Elon owns approximately 23% of Telsa’s outstanding shares. Therefore, Elon’s Tesla shares are around …

$ 196 billion

That proportion alone would make Elon the second richest person in the world, just a few billion behind Jeff Bezos.

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Elon Musk, soon to be a billionaire?

As if all of this wasn’t astonishing enough, a financial analyst named Adam Jones of Morgan Stanley released a report on Tuesday titled “SpaceX Escape Velocity … Who Can Catch Them?

In this report, Adam Jones praises Musk and SpaceX. He believes SpaceX will make a fortune from a combination of space infrastructure, space exploration, mining, and other scientific activities. Most importantly, he has extremely high expectations for the company’s Starlink satellite communications system.

The Morgan Stanley analyst concludes his report with two bold predictions.

#1) SpaceX will soon grow to a valuation of $ 200 billion. Assuming Elon retains his 43% stake, his SpaceX stock at that level would be worth $ 86 billion. If Tesla’s market cap is $ 1 trillion at this point, Elon’s net worth would be $ 316 billion.

# 2) SpaceX will eventually become so valuable that it will catapult Elon Musk into trillionaire status.

What would Elon Musk need to become a trillionaire?

For this calculation, let’s assume that Elon continues to own its current 23% stake in Tesla and 43% in SpaceX.

When SpaceX eventually grows to a $ 250 billion company, Elon’s stake will be worth $ 107 billion.

If Tesla eventually grows into a $ 3 trillion company, Elon’s stake would be worth $ 690 billion

That would bring him a net worth of nearly $ 800 billion.

So math wouldn’t work. In order for Elon to become a billionaire, SpaceX needs to do a lot more in the valuation department.

Eventually, if SpaceX were a $ 1 trillion company, Elon’s stake would be worth $ 430 billion.

At this level Elon Tesla would “only” need a market capitalization of 2.5 trillion US dollars. That would put its 23% Tesla stake at $ 575 billion. He has a combined net worth of …

$ 1,005,000,000,000

Do you think he will make it?

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