Cracking the Code: How Did Elon Musk Make His Money

Billionaires’ success stories are always fascinating. Want to know how the world’s most popular Billionaire, Elon Musk is making money? If so, this article has got you all covered. According to Forbes, Elon Musk is one of the richest men in the world. Let’s see, how did Elon reach these heights? 

Elon Musk is the founder of famous companies like Tesla, SpaceX, Twitter, and OpenAi. Unlike Jeff Bezos or others, he is currently making money through different companies and businesses. In addition, he co-founded a Boring Company that aims to reduce traffic. Elon also co-founded PayPal, the “Payoneer of Digital Payment.”

Elon started his journey long ago and never looked back. We will uncover everything related to this Tech Freak in this detailed guide. Keep reading for expert business and life tips to help you learn from this exceptional talent. Let’s start with his profile and education in his business life.

Elon Musk’s Profile

Elon Musk is a South African-born American business magnate, industrial designer, and engineer. He is the son of Errol Musk. He is currently living in Taxes. This profile section will answer some of the most common questions about Elon Musk’s personality. These questions include his height, zodiac sign, Elon Musk’s net worth, and religion. Let’s uncover them one by one.

How Tall Is Elon?

Elon Musk is 6 feet and 2 inches tall, 188 cm. He is tall, and in 2014, he also claimed it in a tweet about his height. The Billionaire doesn’t seem this tall in the pictures, but people who know him in real life told he has a broad physique.

What Is Elon Musk’s Zodiac Sign?

Musk’s birth date is 28th June 1971, meaning his zodiac sign is Cancer. Musk has a Cancer sun with an analytical Virgo Moon. In addition, his moon sign is Leo which brings a certain fearlessness in him when making tough decisions. Cancers are solid leaders; people follow them, and we can find all these qualities in Elon.

Elon Musk’s Current Net Worth

Elon musk is currently the 2nd wealthiest person behind Bernard Arnault. His real-time net worth is around $151.8 billion. It is growing speedily daily due to his extremely successful tech projects considered as future. 

Religion

Musk was brought up as a Christian, but he is an Atheist. He stated that he doesn’t believe in God or any religion. He praises Jesus but still doesn’t believe in any religion. In an interview, he also said he wouldn’t stand in Jesus’ way.

How Did Elon Musk Start Out Making His Money?

Musk’s story of earning starts by selling a video game. In his college Elon, alongside his fellow students, also rented a house and then converted it into a nightclub in his college days to pay the rent. He tried his fortune in many businesses and startups. 

After he dropped out of Stanford University, he founded two technology startup companies in 1990. From a video game to Tesla and SpaceX, Elon has come a long way. Let’s see how Mr. Musk reached these heights. 

Were Elon Musk’s Parents Rich?

Although Elon’s parents were not Billionaires like him, they were not poor. His father, Errol Musk, was an electro-mechanical Engineer, pilot, and sailor. His mother, Maye Musk, was a model and dietitian. While they were not wealthy, they were relatively well-off and able to provide for their family’s needs.

Elon denied a Twitter thread where he was responding to Berkeley professor Robert Reich who said that Musk’s father was a millionaire, so that’s why Musk is a billionaire now. Only the children of the rich get richer. So, we can say that Musk’s parents weren’t rich enough to make him a millionaire.

Take a Look at The Wealth Of Elon Musk’s Family:

Elon Musk As A Teenager

Musk’s teenage life was more challenging as he used to live on $1 a day when he moved to Canada. He moved from his native home in South Africa to North America to start college studies. Elon Musk has been fascinated by technology and science since his childhood. He started reading the encyclopedia at a young age. 

His aptitude for computer programming was recognized early on, and he began taking computer classes at a young age. At 12, he created and sold the code for his first video game, “Blastar.” He and his brother, Tosha, had plans to open their arcade, but their parents did not approve of the idea.

Educational Background

Musk started his education at Waterkloof House Preparatory School. He graduated from Pretoria Boys High School. He attended the University of Pretoria for 5 months. After that, he moved to Canada, where in 1990, he entered Queens University in Kingston. He also found his first wife, Justine, there. He completed his Bachelor of Arts degree in Physics from the University of Pennsylvania and Bachelor of science in economics from Wharton school.

Musk says that he completed his degree in 1995, but on the records of UPenn, it was awarded in 1997. In 1995 he was accepted for a Ph.D. program at Stanford University, but after 2 days, he dropped the degree.

After University

He dropped out of the Ph.D. program offered by Stanford University. Musk, with his brother Kimbal Musk, co-founded the software company Zip2. Compaq then bought Zip2 for $307 million. Musk then co-founded X.com, which was an online bank. X.com, later in 2000, merged with Cofinity to become PayPal, which was sold to eBay for $1.5 billion.

First Company

Musk’s first company was Zip2 in 1995, an online city guide. Musk, with his brother, co-founded this company. According to multiple reports, his father gave him $28000 to start the project. This company changed Musk’s fortune and made him a millionaire.

Later, many big newspaper companies like The New York Times and Hearst started using Zip2. The company grew rapidly, and many big companies like Compaq and CitySearch tried to merge with them. 

After successfully selling Zip2, Musk invested in Xcom(Experimental.com), which later became Paypal. It was the first largest online payment succession. It was later sold to eBay in 2002 for $1.5 Billion. 

First Million

Elon Musk made his first Million by starting a software company called Zip 2. He built this company to help people get directions to businesses. Zip2 was a corporation that provided online city guide software to newspapers. 

Zip2 allowed communications to take place among users and advertisers. One of the products of Zip2 was called Auto Guide. The purpose of AutoGuide was to connect online newspaper users with local dealerships. Up to 200 newspapers started using their platform in 1998.

Still, Musk was far from the mark of 1 million. In 1996 Mohr Davidow Ventures invested $3 million in Zip2, but this investment made Musk hand over his CEO position to someone else. He was demoted to the CTO of the company. 

In 1998 the CEO of Zip2 tried to merge the company with CitySearch, but Musk started a coup, and as a result, he took over the company again. Later on, Zip2 was sold to Compaq in 1999. Musk got $22 million as his share from the company. That’s how he made his first million.

Starting Tesla and SpaceX

Musk later invested the money earned from PayPal in Tesla and SpaceX. Although SpaceX initially failed in many experiments, both companies are highly successful these days. As electric vehicles are the future, their sales are increasing massively, and following the success of SpaceX, NASA has also shaken hands with them. 

These two projects have been the key to reaching these heights. Tesla is ranked as the most valued automotive company in the world, with a brand value of $75.93 Bn in 2022. According to CNBC, SpaceX is valued at around $137 Bn as of 2023.

Twitter Purchase

Elon’s latest major purchase has been the famous social media application Twitter. Musk took over Twitter in October 2022 with a record $44 Billion price. He paid $54.20 per share of Twitter. He has bought it with ambitions of free speech for everyone. Activating Donald Trump’s Twitter account is one of its prime examples.

Elon aims to make the brand revenue 4 times than now and have its user base by 2028. Since the takeover, he has been talking about improving this platform, like his concerns regarding fake accounts and spam on Twitter. Elon plans to make this platform free from bots acting as fake followers.

Is Elon Musk Self-Made?

Elon Musk is often referred to as a “self-made” billionaire, meaning that he built his wealth and success through his efforts rather than inheriting it from others. He was not born into a Billionaire or Millionaire family. He made his fortune through hard work. The journey from selling a video game to being the CEO of SpaceX is living proof. 

Elon Musk has certainly achieved a great deal of success through his efforts. He has been involved in several successful business ventures, including PayPal, SpaceX, and Tesla. Elon is widely considered a visionary entrepreneur and inventor known for his ambitious plans and innovative ideas. That’s why the tech genius is referred to as a self-made Billionaire. 

List Of What Elon Musk Invent

Elon has been inventing since his teenage years, and his early ideas revolved around software and companies in this field. As his vision evolved, he focused on mass transportation and consumer products. Most of his ideas have proven to be huge successes. Let’s have a look at his amazing inventions till now.

Blaster Video Game

Elon Musk has been a fan of video games since childhood, and at 12, he created his own video game and sold it to a computer magazine for $500. This early experience in creating and selling his own video game demonstrates his entrepreneurial spirit and business acumen, even at a young age.

Web Calls

Elon Musk had an idea about allowing computers to make phone calls to landlines by clicking on a company’s contact information online. The calls would then be routed to the company via a call center. He secured a patent for this technology in 2001. This concept is known as click-to-call. 

It allows users to initiate a phone call to a business directly from a website or online advertisement by clicking a button or link. This feature uses a technology called Voice over IP (VoIP) to make the call through the internet instead of traditional phone lines. Click-to-call is commonly used by businesses to provide convenient customer service and support. 

Zip2

Zip2 is Elon’s first very successful project. He initially ran the company out of a small apartment in Silicon Valley. It provided online business directories and maps to newspapers. He played an important role in developing the company’s technology, including the mapping and navigation software used to power the directories.

Paypal (Electronic Payments)

Elon Musk was one of the co-founders of PayPal, an online payment system that eBay later acquired. He was part of the board of directors and a significant shareholder in the company. 

Musk was one of the company’s largest shareholders when eBay acquired it in 2002 for $1.5 billion. He played a key role in developing PayPal’s business strategy and was instrumental in securing funding for the company during its early stages.

Tesla (Electric Vehicles)

Electric cars company Tesla is the most important creation of Elon Musk. Although he is not the one who invented electric cars, he set the foundation of the first working marketplace for electronic vehicles. 65% of electric vehicles being used in the US in 2022 were manufactured by Tesla motors. Its current net worth is $146B.

Elon Musk’s goal for the company is to accelerate the world’s transition to sustainable energy through producing and selling electric vehicles, solar products, and energy storage systems. It is to address the CO2 emissions and climate change with an entire ecosystem.

SpaceX (Falcon rocket)

Falcon rocket is an invention of SpaceX. Elon Musk is the CEO of SpaceX. He led its foundation in 2002 with Tom Mueller with the main objective of reducing travel costs to space. Falcon 9 is its major invention which is a medium-lift launch vehicle. It can carry cargo and crew into Earth orbit and is partially reusable. 

The rocket is two-staged, with the first stage reusable and the second stage expendable. The reusable first stage is intended to return to the launch site or a drone ship for recovery, enabling multiple launches with the same vehicle. SpaceX is currently valued at around $137 Bn. NASA has also awarded contracts to SpaceX and is working together on some projects. 

Elon Musk, the CEO of SpaceX, has stated that his goal for the company is to make life multi-planetary by developing the technology needed to establish a permanent, self-sustaining human presence on Mars. He also aims to reduce the cost of space launches, making it possible for more companies and individuals to access space.

Solar City

Elon Musk played a central role in the formation and development of SolarCity, a solar energy services company. Musk had the idea to start SolarCity to address the need for clean, sustainable energy and help combat climate change.

He believed that by making solar power more affordable and accessible, more people and businesses would adopt it as an energy source. Musk was actively involved in the company’s strategy, funding, and operations. 

How Does Elon Musk Spend His Money?

Elon Musk, the CEO of Tesla and SpaceX, is known for investing a significant portion of his wealth into his companies and other ventures. He has also made significant charitable donations to renewable energy and education. Let’s take a look at some of his prominent spending ways. 

Reinvestments

Elon Musk is known for reinvesting a significant portion of his wealth into his companies, particularly Tesla and SpaceX. He has used his wealth to help fund the development and production of electric cars, solar energy systems, and space exploration technology.

Like Elon, after selling Zip2, reinvested $10 million in Xcom, which later became PayPal. He made $180 million from Paypal shares sale but reinvested $100 Million in SpaceX, $70 Million in Tesla, and the remaining $10 Million in his SolarCity project. 

Donations

Elon Musk has made many significant donations, primarily to education and renewable energy. Elon believes in giving or contributing back to society, so he has made several donations over the years. In 2015, he donated $10 million to the Future of Life Institute to support research to ensure that artificial intelligence is developed safely and efficiently.

 In 2018, he donated $100 million to the global non-profit organization OpenAI, which aims to promote friendly AI and advance digital intelligence for the betterment of humanity. In addition, in 2020, he pledged $100 million to plant 100 million trees via a campaign named TeamTrees.

Real Estate

Elon Musk has a history of making high-profile real estate purchases. In 2012, he purchased a 20,248-square-foot mansion in Bel-Air, California, for $17 million. In 2016, he purchased four adjacent properties in the same neighborhood for $24.25 million. Also, in 2018, he purchased a $6.4 million ranch in Texas that includes a main house, a guesthouse, a pool, and a barn. 

In addition to these personal properties, Musk’s companies, such as SpaceX, also own and operate several properties, including a launch facility at Cape Canaveral in Florida and a rocket development and testing facility in McGregor, Texas.

Business & Life Tips From Elon Musk

Elon Musk has had some really difficult challenges in business and life. He always overcomes those challenges. There’s a saying of Socrates, “Smart people learn from everything and everyone”. We have gathered some amazing tips from Elon to help you achieve your business and life goals. 

Keep Investing

Elon has been making money since his childhood. He was business minded and always looked forward to ways of reinvesting his earned money. Elon successfully sold Zip2 for $22 Million but chose to reinvest it rather than spend. Then he made $180 Million from the sale of shares in PayPal but again went on to invest in projects like SpaceX etc. This habit has been a key factor in his success till now..

Work On Your Strengths

Elon and other Entrepreneurs always advise you to work on your strengths. Once Elon said, “Forcing yourself to do anything or be anyone you do not want to always ends up in disappointment. Play to your strengths, and you’ll succeed.”

It means you should work in those fields you love to work in. If you are forcefully working in any place, you will never be able to get the best out of yourself. There’s a famous saying: You succeed when your passion and profession are the same.

Elon has always been a tech guy since his childhood. He has always worked in relevant companies and places. Tesla, SpaceX, and Paypal are proof of it. 

Take Risks

There is no surety in business. Elon once said, “Take risks and do something bold.” We can also see this from his personal decisions. He made huge money from selling some companies to invest in new companies he never knew would succeed. SpaceX also failed in many major experiments, primarily Elon Musk decided to continue investing.

When Musk was asked about bankruptcy, Musk replied, “My kids might have to go to a sort of government school. I mean big deal, I went to a government school.” So Elon never feared taking risks while making decisions. Even SpaceX nearly got bankrupt after the continuous failure of experiments.

Work On Communication Skills

Communication skills are very important ,no matter your profession. He advises, “Talk to people from different walks of life and industries, professions and skills”. To improve your communication skills. Communication skills are key, especially in a department like sales.

Spend Wisely

One more thing we learned from Elon’s life is to spend wisely. Usually, when people start earning, they start to spend more on luxuries and extravagance. Elon strictly opposes the idea. According to him, you must enjoy and spend too, within your domains. 

We can see this idea in his personal life. Elon lives in a two-bedroom house within walking distance of his SpaceX facility, but he spent $78 Million to buy a private jet. So what matters is spending where it’s needed. 

Stay Focused

Focus is a key lesson if you want to succeed in any field. Whether you are getting results is only sometimes staying disciplined and focused on your goal. Stay focused like Elon has been through his whole journey; even as a Billionaire, he is working 80 to 100 hours a week.

Affordable Hobbies

Another thing to learn from Elon is always to have affordable hobbies. It helps you save a lot of money. Surely Billionaires don’t have time for hobbies, but Elon’s hobbies are inspiring. These are affordable hobbies, from spending time with family, listening to music in the car, and hanging out with friends to playing video games like Halo Infinite.

Contribute To Society

Elon musk believes in contributing to society. He has contributed a lot to charities. Its prime example is the donation of shares of Tesla worth $5.7 Billion. Elon once told Fridman, “Try to have a positive net contribution to society.” His company’s motto is living proof of it. 

Tesla is the largest electronic vehicle-producing company aiming to reduce CO2 emissions. SpaceX is finding ways for humans to live on other planets. Musk once said during a podcast, “A lot of respect for someone who puts in an honest day’s work.”

Think Big

Businesses run by Elon Musk are known for their daring and forward-thinking outlook. As Elon says, work on “stuff that’s going to matter.” Getting away from fossil fuels and ensuring humanity’s long-term existence by populating Mars, are what drive him. 

He believes that low ambition is baked into most companies’ incentive structures. Many companies focus on making small improvements to their existing products rather than daring to imagine completely new ones.

Ignore the Critics

Elon is known for his ambition and bold vision, which has led to some criticism and skepticism from others. He doesn’t let the opinions of others affect his decisions and instead focuses on his problems. As he refused, “I think it would be arrogant if we said we were definitely going to do it, as opposed to we’re aspiring to do it, and we’re going to give it our best shot.”

He doesn’t worry about the potential for failure or looking foolish, as his passion for pursuing important ideas drives him. He believes that success should be measured by the problems solved rather than the money made. This mindset allows him to make decisions more easily and stay focused on what he believes is important. 

Timeline Of Elon Musk 

• 1971: Elon Musk was born in Pretoria, South Africa. 
• 1989: Musk moved to Canada to attend Queen’s University. 
• 1992: Musk moved to the University of Pennsylvania, receiving dual undergraduate degrees in economics and physics. 
• 1995: Musk co-founded web software company Zip2 with his brother, which provided online business directories and maps to newspapers. 
• 1999: Zip2 was sold to Compaq for $307 million, providing the initial funding for Musk to start X.com, an online payment company. 
• 2002: X.com was renamed PayPal and was sold to eBay for $1.5 billion. Musk founded SpaceX to reduce the cost of space exploration and make it possible for humans to live on other planets. 
• 2004: Musk joined the board of directors of Tesla, an electric car company. 
• 2006: Musk became CEO of Tesla, leading the company to launch its first car, the Roadster, in 2008. 
• 2008: Musk founded SolarCity, a solar energy services company. 
• 2015: SpaceX landed the first stage of its Falcon 9 rocket, a major milestone in reusable rocket technology. 
• 2016: Tesla acquired SolarCity, furthering Musk’s goal of creating a sustainable energy ecosystem.
• 2018: SpaceX launched its first Falcon Heavy rocket, which carried a Tesla Roadster into orbit around the sun. 
• 2020: SpaceX sent its first crewed spacecraft, the Crew Dragon, to the International Space Station, marking a major milestone in commercial spaceflight.
• 2022: Elon Musk purchased Twitter for $44 billion. 

FAQs

Final Thoughts

That was all about the inspiring journey of Elon Musk. Now that you know how Elon Musk makes his money, you can follow in his footsteps to have a bright future. You may not be the world’s most influential Billionaire, but following Elon’s business and life tips will certainly help you a lot in achieving your goals.

Elon Musk has always been a technology fan; it was his passion. You can also follow your passion and reach the heights in your field like Elon became the CEO of companies like Tesla and SpaceX. You have also learned about his money-making and spending ways and complete profile. Keep learning and following all these things if you idolize him.