SpaceX Could Make Elon Musk the World’s First Trillionaire

SpaceX

From sending civilians to space to cutting the cost of space travel, SpaceX has set itself apart in the aerospace industry, making it rain for founder Elon Musk.

Analysts at the investment bank Morgan Stanley believe that business magnate Elon Musk could become the world’s first trillionaire. They suggest that while Musk might have earned his fortune from the electric car company Tesla, it is SpaceX that will make more money over time. 

Musk has addressed the statement jokingly on Twitter. Replying to a tweet that read “Elon Musk is predicted to become the world’s first trillionaire, thanks to SpaceX,” Musk added “*in Dogecoin”. Jokes aside, Musk owns 48% of the over-US$100 billion company, which means that the growth of this company will certainly be a huge plus for him. Let’s fully understand the potential of SpaceX by looking at what sets it apart from other aerospace companies.

Technology solutions

You would have to be living under a rock to not have heard about SpaceX. The company has a knack for making its way into the news on a regular basis. The company has had many achievements, one of the biggest ones being that it was responsible for the world’s first reusable rocket, Falcon 9. With the reusable rocket, money spent on constantly rebuilding rocket hardware was spared. This has made space travel not just economical but also sustainable in terms of resource consumption.

Willingness to experiment (and even fail)

Much like other rockets, the ones built by SpaceX have also had their fair share of accidents. In 2015, one of SpaceX’s rockets broke apart during lift-off. However, the company has been proactive in finding solutions to each and every problem their rockets have encountered. Today, Falcon 9 is one of the most reliable rockets ever built and is the only way to get to the International Space Station (ISS) from the United States. 

Similarly, the company has been experimenting with increasing accessibility of space travel. The company was responsible for the first all-civilian crew space mission. As a part of this mission, SpaceX sent four civilians to space on a three-day journey around Earth.

Unique business model

SpaceX is a pioneer in commercial space exploration technology. Right from the beginning, the company’s goal has been to cut costs on space travel. Not only have they focused on technological solutions to this effect, but they also charge significantly less than other aerospace companies, making them the best candidates for NASA contracts. 

Although SpaceX’s profit margin is low, it uses its contracts to consistently improve upon its products. Their business model is to get contracts (even if at a lower profit margin) and use them as opportunities to learn and improve.

SpaceX will make Musk his next couple of billions by not just changing the face of space travel, but also by the tremendous potential the company has in other sectors. Starlink, the company’s proposed plan for a high speed-low latency internet network, is an example of its potential. 

Morgan Stanley analyst Adam Jonas said that, “investors are beginning to appreciate the potentially wide-ranging use-cases for SpaceX’s reusable launch architecture across communications, transportation, [E]arth observation and other space-related domains.” Thus, the possibilities for SpaceX are truly endless, and only time will tell how the company will expand its avenues. 

Header image courtesy of Unsplash

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

Top 5 Clothing Items That Are Contributing to Skims’ Net Worth

Top 5 Clothing Items That Are Contributing to Skims’ Net Worth

In 2022, American media personality Kim Kardashian’s shapewear brand Skims reached a market capitalization of US$3.2 billion. This massive net worth is a byproduct of a lot of factors, such as Kim’s popularity, the brand’s inclusive size range and adaptability (as we saw during the pandemic) to name a few.

5 Companies That Have Already Announced Job Cuts This Year

Layoffs in 2023: 5 Companies That Have Already Announced Job Cuts This Year

The layoff spree at tech giants is bleeding into a new year. It has been just three weeks since we entered 2023, yet the media is buzzing with disturbing numbers about people being laid off by tech companies: At least 104 tech companies let go more than 26,000 employees. This means, more than 1,600 tech employees were dismissed per day in the past couple of weeks. Let’s take a look at the top tech companies that are laying off aggressively.

Goblin Mode

Decoding the World’s Obsession with “Goblin Mode”

Do you find yourself struggling to maintain a positive and productive attitude at work? Are you becoming increasingly irritable or disengaged from constantly feeling overwhelmed and stressed? If so, you’re not alone. Many people experience this state of mind, and some turn on their ‌ “goblin mode” to cope with it. The term “goblin mode” gained popularity in February 2022

Instagram vs YouTube—Which Is Better for Your Business?

Instagram vs YouTubeWhich Is Better for Your Business?

With the rise of social media platforms, like Instagram, TikTok and YouTube, businesses have gained new opportunities to reach their potential customers. It’s important to note that Instagram and YouTube are not just for entertainment; they can be used as powerful tools for marketing and creating brand awareness. Many individuals already use YouTube, TikTok and more to earn money.

What Is Ambient Computing? How Does It Affect Our Lives?

What Is Ambient Computing? How Does It Affect Our Lives?

Picture this: it’s five degrees Celsius outside, and you are freezing, but instead of you adjusting your thermostat, your house automatically realizes that it needs to be warmed up and changes the temperature accordingly. That is what ambient computing is all about. Ambient computing (also called ambient intelligence) refers to technology immersed into your environment. You don’t have to consciously interact with it using screens or keyboards.

How Can AI Be Used in Governance?

How Can AI Be Used in Governance?

One of the many things that artificial intelligence (AI) is capable of doing is helping governments function smoothly. In a previous article, we discussed that, over time, AI would be responsible for more decision-making. As such, it can help governments worldwide make tough decisions by ridding the decision-making process of human biases.