Morgan Stanley analysts say that Elon Musk will become a trillionaire. But won’t be because of Tesla, it will be thanks to his other company, SpaceX.
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The private space exploration company “is challenging any preconceived notion of what was possible and the time frame possible, in terms of rockets, launch vehicles and supporting infrastructure,” Morgan Stanley’s Adam Jonas wrote Tuesday in a note titled, “SpaceX Escape Velocity … Who Can Catch Them?” Bloomberg reports.
Musk is the richest person on the planet, with a net worth of $241.4 billion according to the Bloomberg Billionaires Index. SpaceX currently makes up less than 17% of his net worth, and that’s after the company was valued at $100 billion in a secondary share sale earlier this month.
Jonas has a $200 billion valuation for SpaceX. However, he views it as multiple companies in one, encompassing space infrastructure, Earth observation, deep-space exploration and other industries. Its Starlink satellite communications business is the biggest contributor to his valuation estimate, according to Bloomberg.
Earlier this month, as GOBankingRates reported, SpaceX has an agreement with new and existing investors to sell up to $755 million in stock from insiders at $560 a share, CNBC reported, citing multiple people familiar with the deal — which increased the company’s valuation to $100.3 billion. The company did not raise new capital at this time, sources said, with the purchase offer representing a secondary sale of existing shares, according to CNBC. The new share price is a 33% increase from SpaceX’s last valuation of $74 billion at $419.99 a share in February when the company raised nearly $1.2 billion.
The company had a similar secondary transaction in February, with a deal for insiders to sell up to $750 million at the time.
This new valuation makes Musk’s SpaceX the second most valuable private company in the world, according to CB Insights, behind only China’s Bytedance and jumping past fintech firm Stripe, CNBC reports.
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His earnings from Tesla shouldn’t be overlooked. As GOBankingRates reported, Musk’s wealth increased by $25 billion practically overnight when Hertz placed an order for 100,000 Tesla cars for its fleet and pushed Tesla’s value to $1 trillion. That, coupled with a strong third-quarter from the electric car company, has boosted him to hit a net worth of just over a quarter trillion dollars, according to Forbes.
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