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RE: Tesla CEO, Elon Musk, Displaces Bill Gates To Become The Second Richest Man In The World

in Project HOPE4 years ago

For me, I will say that the stock market is overvalued and moreover, Tesla is still running at a loss so its valuation is dependent on the fact that people have free money to spend out and they want to spend the money on technology and innovation. Toyota made more revenue and great profit compared to Tesla which made losses in 2019.

The only advantage that Elon Musk have at this period is that he can sell some of his stake for liquid cash on the stock market so he can use that to fund Tesla. It is no doubt that Tesla stocks are doing well but the stock does not determine the profitability of the company.

Another reason why Elon Musk or Jeff Bezos taken over Bills position isn't really a concern for me is because Bill started appearing on Forbes list from his youth as the youngest billionaire in 1987, ever since he has been able to diversify his portfolio thereby not having his asset determined by the number of shares he owned in Microsoft. One impressive move Bill made during the dotcom bubble was to ell a large portion of his stocks which gave him access to liquid cash when the recession came. If Elon Musk can do the same, selling off a little portion of his holding so he can be able to diversify his wealth, it will be a good move because the market is all green during a recession, thanks to stimulus checks and bail outs.

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Thanks for the very detailed analysis here. This can conveniently pass as a sequel to this post. I really think that Musk should do some cash out and have his resources diversified, as you say. Thanks for stopping by.

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