This installment of The Matt Allen Letter is free for everyone. If you would like to read about stock analysis, stock market analysis, and much more. You can subscribe here.
Elon Musk has been under intense scrutiny over the last couple of months because of his recent purchase of Twitter for $44 Billion. However, I have been examining his past performance of companies, and I have been nothing but astonished at what he has done building these companies. Elon Musk has built a net worth of $250 Billion at the age of 50. To put this in perspective, Warren Buffett accumulated 99% of his net worth after the age of 50.
In this newsletter, we are going to analyze the success of the 6 companies that Elon has built. We are going to make the case that Elon Musk is the greatest to ever do it.
These companies include:
Tesla: $1+ trillion valuation
SpaceX: $100+ billion valuation
PayPal: $100+ billion valuation
The Boring Company: $5.6 billion valuation
Solar City: $2.6 billion valuation
Neuralink: ~ $1 billion valuation
Before Elon Musk became the real life iron man, before Peter Thiel became one of the most famous Venture Capitalist, before Reid Hoffman became the founder of LinkedIn, they were all part of PayPal.
You might be thinking that Elon Musk was the leader of the PayPal mafia, but this is actually not true. Peter Thiel is known as the Godfather of the PayPal Mafia. He was the founder of x.com. PayPal merged with x.com which made Elon the largest shareholder of PayPal. In 2002, eBay acquired PayPal for $1.5 billion in stock. He made $165m after the sale.
However, PayPal credits a ton of their success to what they did after Elon joined the team. In hindsight, the PayPal team was one of the greatest “teams” to ever be assembled in the history of business.
Peter Theil decided to go into venture capital, and he became one of the greatest venture capitalist in history. I highly recommend his book Zero to One.
After the sale of PayPal, Elon Musk launched SpaceX with the intentions of making access to space faster and cheaper and eventually create a colony on Mars. One of the missions behind this company is to explore space and allow the average person to see space.
SpaceX was mostly a failure for Elon due to multiple launch failures and starship explosions. However, this has completely changed in recent years, and SpaceX has became a massive success. in the space industry with a number of records to its name, including being the first private company to send a craft to the International Space Station and send astronauts to orbit.
In 2018, SpaceX inked a massive deal with NASA that allowed it to have the funds to lead the space movement.
SpaceX is the creator of Starlink which is leading the movement to bring broadband internet to space. The Ukrainian military has used Starlink internet service to defend their country against the invasion of Russia.
Elon Musk became famous for his leadership at Tesla, the electric car company that was named after famed inventor Nikola Telsa. At one point in 2021, Telsa was valued at over $1 Trillion. with $0 in AD spend.
Tesla was founded in 2003 by two other men. Elon entered in a Series A funding round with an investment of $6.5 million, the company was failing and without Elon’s investment it wouldn’t have survived. As time went on, Elon took an increasingly active role in the company.
Elon has been the CEO since 2008. The Telsa Model 3 has become the most popular electric car in production today, with over 1 million units sold globally.
Tesla is more profitable than General Motors.
Solar City (2006)
Elon and his cousins founded Solar City in 2006. This company became the leader in residential solar installations in the U.S. by the mid-2010s, SolarCity installed solar energy systems that were leased to residential users.
Tesla ended up purchasing SolarCity in 2016 for $2.6 billion via stock. However, Elon Musk faced a massive lawsuit from Solarcity shareholders claiming that he illegally sold the company to himself.
As of writing this newsletter, news has broken that Elon has won the Solar City lawsuit. (weird timing)
Musk secretly founded Neuralink in 2016 with a mission to create brain implants that will one day make humans hyper-intelligent, heal traumatic brain injuries and let paralyzed people walk again.
There isn’t much more to say about this company because they keep the workings of the company very secret.
If Musk is able to pull this off, it will be a WILD time to be alive!
The Boring Company (2016)
The company’s mission is to construct “hyperloop” tubes that will shoot cars at high speeds between major cities, cutting down on highway congestion.
The Boring Company has opened two short loops in Las Vegas and a test tunnel outside Los Angeles but Musk has far greater ambitions.
He claimed in 2017 that he had “verbal approval” from the US government to construct hyperloop between New York City and Washington, D.C. that would reduce travel time between the two cities to just 29 minutes.
Our goal is to solve traffic, which plagues every major city on Earth. - Elon Musk
If you live in Atlanta, this might be your favorite achievement of Elon Musk. This company would essentially end Atlanta traffic on I-75 and 400.
Elon Musk purchases Twitter for $44 Billion. The deal will become official in October 2022.
I hope you have a great day!
Stay Hungry, Stay Long