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Tesla, SpaceX and HyperLoop?

Elon Musk: Quickly Becoming the World’s Most Innovative Entrepreneur

 

Lately, Elon Musk has been the subject of multiple headlines. To begin with, Tesla Motors, the fledgling electric car company that he has personally injected his fortune into, has turned into a massive success story. Its stock price has increased by nearly 500% since December 2012 from about 33$ a share to 145$ a share today, August 13th. Furthermore, the second quarter earnings report released by the company showed extremely reassuring signs with $0.20 earnings per share and a total of $30 million worth of profits. It also surpassed its estimated production of 4,500 cars for the quarter producing 5,125 cars.

These are all numbers that are extremely reassuring for the innovative car company that produces technologically superior all electric, high performance cars. These cars are fast and also silent. Here’s a video by Tesla showing off their Model S technologies:

As you can see the features are top of the line and innovative all the while saving the consumer thousands of dollars on gas a year.

Thankfully, the market for a radically more efficient mode of private transportation is huge and will only increase in the future. That being said, the potential for Tesla Motors to grow and command an even larger share of the electric vehicle market is massive. However, Elon Musk is not content with providing just one revolutionary product.

SpaceX

SpaceX is Elon Musk’s attempt at privatizing the space travel industry. With government funds beginning to dissipate from NASA, the market is wide open for innovators to begin making a profit off space travel. So far, SpaceX has been able to design reusable rockets and send an unmanned spacecraft to the International Space Station and is the first private company funded by private capital to do so. Its main goals however, are to one day aid in the construction of a permanent human presence on Mars.

Here’s an interesting video explaining the specs of their rockets and the special features that they have developed:

SpaceX and Elon Musk have decided not to hold an IPO just yet. However, the company’s estimated valuation remains impressive. After using about $1 Billion of investments, including around $100 million of Elon Musk’s own money, the company is now valued at around $2.4 billion. These are impressive numbers yet again for a company that was founded by Elon Musk in only 2002.

 

HyperLoop

This is Elon’s latest project which proposes a different medium of transportation between Los Angeles and San Francisco than the high speed rail project that has recently been proposed and passed as a possible option. This particular project consists of pods using air bearings to travel at extremely high speeds (upwards of 700 mph in order to do the trip in 35 minutes). This project is very technologically advanced and presents a very interesting alternative to our current modes of transportation which are limited to: Rail, car, plane, train and boat. This technology would quickly become the fastest method of land travel and could very well revolutionize how people in California travel, and even commute, between the two major metropolitan areas. Whats more is that it would be entirely solar powered and self sustaining. This mode of transportation would only cost around $20 for a one way ticket, much cheaper than airfare or car travel and also much more efficient.

You can read the entire proposition written by Elon and his team here. Although it is a long read, I assure you it is quite worth it, even if it is just to contemplate alternative methods of human transport as a whole.

 

Conclusion and Ideas

In all, Elon Musk is a very busy guy. So busy in fact, that he basically admitted he could not take on the HyperLoop project himself and prompted others to take it on and make it a reality. That being said, his various projects (Paypal notwithstanding) are of incredible magnitude and innovation and could potentially change their respective industries for the better in terms of sustainability.

Elon Musk is one of the most succesful entrepreneurs of the decade and thankfully, he is showing the world that sustainability is possible, profitable, and stylish with Tesla and potentially HyperLoop. However, not everything is perfect and with HyperLoop especiall, there will be a lot of politics and obstacles to overcome before this can come anywhere close to becoming a reality. It is reassuring to know that someone is trying to move the transportation industry forward instead of letting it sit stagnant. While this alternate proposal might not fully challenge the bullet train initiative, which already has secured funding but finds itself entrenched in legal battles, it has already turned heads in California despite having been released only on Monday (8/12/13)

Investing

In terms of investing ideas, it is easy to have missed the Tesla train but here is a look at Tesla’s suppliers for some ideas on companies to invest in.However, be on the look out for SpaceX’s IPO which the company has stated could happen as early as 2013.

 

tesla-info

The Tesla Model S list of part suppliers
Source: SupplierBusiness

Another interesting investment idea, (for those of you that have money to spend) would be to buy property in Downtown Los Angeles. Currently a rather cheap location in comparison to the rest of Los Angeles mostly because it has very low levels of attraction for most residents, it would become an extremely popular area if the Los Angeles HyperLoop station were to be built there. Suddenly, demand (and prices) would skyrocket. Just a thought.

 

What do you think of Elon Musk? Do you believe in the HyperLoop plan at all? Join the discussion here.

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Laurent Hesnard

writer

A cautious but optimistic observer of the market, Laurent enjoys finding investment opportunities that might disrupt their respective industries. He also has a passion for helping others learn about the inner workings of the markets in order to achieve their financial independence. As the Marketing Manager at SprinkleBit, Laurent gets to live out that passion everyday.

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