By now, Elon Musk has become a household name as an innovative entrepreneur who has hit the world by storm with his out-of-this-world ideas. In addition to having founded Space X, the aerospace manufacturer and space transport services company, Musk is also at the helm of Tesla, the de facto leader in electric vehicles worldwide. Musk has proven himself as someone of such clout that his tweets are taken as sage advice and continue to inspire others to set their own sights on things beyond this world. The billionaire tech entrepreneur has used his influence to lead the global shift towards electric vehicles with his ground-breaking impact on Tesla Inc. With so much going on, it’s little wonder that Musk is currently jostling with Jeff Bezos for the title of World’s Richest Person which, for a few days in January of 2021, he was. Let’s take a look at where it all began for Elon Musk and how two of his most successful companies, Tesla and Space X, are performing in the markets this year. If you’re looking to invest in shares CFDs in hot tech companies like Tesla, you’ll definitely want to keep reading.
Where it all began
Musk was born in South Africa, but his beginnings were far from humble. His mother Maye, who is originally Canadian, is a model and dietitian, while his father Errol counts such titles as electromechanical engineer, pilot, sailor, consultant and property developer on his resume. Musk started out his life with an entrepreneurial spirit from as young as 12 when he created and sold a BASIC-based video game to PC and Office Technology Magazine for around $500. Since then, Musk has certainly made his presence known around the globe by his involvement in a host of businesses, from 2002 when he founded Space X, to 2004 when he joined Tesla. Musk also has helped to create a solar energy company called SolarCity, co-founded OpenAI, which is a non-profit company that promotes research into artificial intelligence, and Neuralink in 2016 which is centred around brain-computer interfaces. With so much going on, Elon Musk entered the Forbes Billionaires list in 2012, and then increased his net worth by a whopping $150 billion over 2020. Musk has racked up an eye-watering fortune and overtaken Jeff Bezos as the Richest Person in the World in January 2021 with a net worth of $185 billion.
Buying a Space X ticket
Elon Musk feels that in order for life to survive we need to become a multi-planet species, and so Space X was born. Musk founded Space Exploration Technologies (Space X) in 2002, with the goal of making more affordable rockets. The first rocket to be developed was the Falcon 1, which was launched in 2006, and the Falcon 9 was then launched in 2010. These were designed to be more affordable rockets than anything else that was on the market. In March of this year, Space X successfully landed its SN10 prototype Starship, which is a reusable ship that only needs maintenance and fuel between space trips. The difference between this model and others on the market is that this ship can maintain an orbit and only come back to Earth when it needs to. This has attracted the attention of many investors, largely because the ship can be used as a space tourism vessel that can carry up to 100 people, all at a more affordable price. In fact, with Musk at the helm, the company aims to release its first tourism flight with Starship in 2023, and effectively change the world’s perspective on space travel.
Electrifying ideas
In 2004, Elon Musk became one of the major funders of electric car company Tesla. Musk’s impact on the company was evident when it released its first car in 2006, the Roadster, which was a faster sports car than other electric vehicles on the market. Tesla’s initial public offering took place in 2010, and since then, the electric car company has entered the S&P 500 and became the most valuable car maker in 2020. Recently, Tesla has been performing better than ever in the financial markets thanks to the world’s shift towards sustainable energy, and the company’s continued innovation and high levels of performance. At the beginning of this month, Tesla stocks leaped up by 7% as the company announced that they had delivered 184,800 and produced 180,338 vehicles in the first quarter of the year. According to data from FactSet, analysts had only expected the company to deliver about 168,000 vehicles in the first quarter of 2021. According to Wedbush analyst Daniel Ives, “In our opinion, the 1Q delivery numbers released on Friday was a paradigm changer and shows that the pent-up demand globally for Tesla’s Model 3/Y is hitting its next stage of growth as part of a global green tidal wave underway.” Ives went on to predict, “We now believe Tesla could exceed 850k deliveries for the year with 900k a stretch goal, despite the chip shortage and various supply chain issues lingering across the auto sector.” While Tesla shares have been down by 9% in 2021 overall so far, the electric vehicle company and its maverick leader seem to be poised for success as the frontrunner of the electric vehicle realm.
What’s next?
That’s truly a loaded question when it comes to Elon Musk and his far off way of thinking. With both Space X and Tesla continuing to roll out innovation on a daily basis, the news is always brimming with hot content for the tech savvy. And if you take a closer look, it’s also rife with content for the financial savvy, as the price movements of shares of companies like Tesla may provide both opportunities and risks for traders who invest in shares CFDs.
How to trade shares with a regulated broker as CFDs
The chance to invest in shares CFDs in brands like Tesla allows you to take advantage of price movements in both directions—increases as well as decreases—without having to purchase the underlying asset (in this case actual shares). So, for example, if you expected the price of Tesla shares to increase, you could open a ‘Buy’ deal or ‘Go long,’ whereas if you expected them to decrease, you could open a ‘Sell’ deal or ‘Go short.’
