Before coming to a conclusion that Elon Musk made all the money from selling products, read this article. It was not the hard work that he contributed to Tesla that made Elon Musk the richest person on this planet within a year, neither his CEO salary, it was the risk which he took 10 years back. It's quite true that Elon Musk isn't working for the companies just to gain profit. He has a definite goal of colonizing Mars in the coming years. He is the founder of Paypal, SpaceX, Boring Company and the CEO of Tesla Inc.
How Did Elon Musk Become The Second Richest Person Within An Year?
Indeed, Elon Musk didn't want to work just for the money and fame, instead, he aimed for producing better products for the consumers each time. But one more interesting fact is that it was not his hard work for the companies which made him the richest.
It doesn't that he made nothing from the companies he worked for, he did and still, he's earning a decent output. More importantly, he was not there in the list of top 10 richest people till 2019, but within 2020, he made more than a hundred billion.
To clarify, Elon Musk's net worth was roughly 27 billion USD at the kickoff of 2020, while at the starting of 2021, his net worth increased to around 185 billion USD.
Let's know the sagacity which made Elon Musk the richest person within a year:
He made that much money from the shares of Tesla. Elon Musk was the major shareholder of the company Tesla, he owned 22% of the shares of Tesla.
Now, when a large number of people started buying shares of Tesla, the value of shares increases. Back in the time, Tesla's share price was 17 USD. While in 2021, the price of a share rose to 880 USD. The latter price was more than 50 times that of the former share price.
Elon Musk's shares were around 193 million as of Dec 2020. When the share price rose to 880 USD, Elon Musk made a profit of roughly 170 billion USD.
The notion behind a company's share price:
When a few people buy a large number of shares of a company, say Tesla, the share price rises. In this way, some or many people started believing that the price will increase even more, in greed, people started buying shares which lead to an increase in the value of the share. The outcome would be an enormous increase in the share price.
It's certain to say that a net profit of 170 billion USD just from the shares is something that requires lots of patience as well as a positive mindset, which Elon Musk has acquired. So we cannot say that Elon Musk became the richest person alive because of his hard work, sure he is one of the most hard-working people, but it didn't play a role in making him the fortune
In simple words, Tesla's seven-fold stock price increase just sent his wealth surpassing Jeff Bezos. Although there was an increase in the share price of Amazon it wasn't too sharp. At last, Tesla's market capitalization is considerably larger than that of Volkswagen, Ford, Hyundai as well as Toyota, even if combined, it won't get any higher than that of Tesla.
Even after Elon Musk became the richest person, he replied ''Well, back to work ...'' to a tweet posted by Tesla Silicon Valley.
What will he do with that amount of money?
He replied that roughly half of his total money was intended to fix the problems on Earth. The other half of his money will help in establishing a self-sustaining place to secure the prolongation of all the species on earth in a destructive circumstance.
There was a strange time in 2018: Tesla stock plunged by 8-9% when the famous entrepreneur Elon Musk was smoking weed (marijuana + tobacco) during a podcast show. Since then, he promised that he will never smoke weed in public. Though there's nothing wrong here, he worked hard and it's better to let him live his life.
Conclusion
If you want to become a fortunate person, then you might make Elon Musk a role leader. He has proved that a person can become the rag to rich within a small period of time. Though he was not lacking money even before he landed on the list of 10 richest people. Investing and trading can make a person from rag to rich, but sometimes the process could be reversed.