By
Svetlana Soroka
April 18th, 2024
Having seen Tesla’s massive growth in 2020, a Tesla shareholder proposed Elon Musk to float a holding company wherein the Tesla CEO can continue as the boss for more years ahead and create enormous value for all his companies and shareholders.
What a year it has been for electric carmaker and automobile giant Tesla Inc (NASDAQ: TSLA) as well as company CEO Elon Musk. Tesla went on to become the world’s most-valued automobile company with valuations soaring 7.5x in 2020. At the same time, Elon Musk added $100 billion to his personal wealth becoming the second-richest person on the planet. And now it is expected that soon Musk will become the boss of a new holding company.
However, wealth has always mattered little to Elon Musk. Rather it’s the impact his companies make on changing the world. Apart from Tesla, Musk’s other companies have achieved major milestones in 2020. Last month in November 2020, SpaceX became the first private company to send 4 NASA astronauts to space.
Looking at the scale of growth that Musk’s companies have registered, Elon Musk might consider clubbing all of his ventures into a single holding company. The suggestion was made by a long-time Tesla investor and Musk fan Dave Lee. Lee suggested what could happen further is Musk doesn’t form a holding company.
Without a holding company:
In ~5 years, Elon steps down as Tesla CEO, remains as Chief Product Officer
In ~10 years, leaves Tesla completely to focus on SpaceX and Neuralink. Starts selling his TSLA stock.
This is fairly obvious to me.
— Dave Lee (@heydave7) December 24, 2020
However, if a holding company is formed Lee notes that “Elon will oversee Tesla, SpaceX (and dozens of other ventures tbd) until the day he dies or loses the cognitive function to run it. Could be another 40 years. Makes a big difference. Personally, I think Elon Musk is the best investor of capital and innovator at scale in our generation, and that might be an understatement.”
“This is an opportunity to create a structure that would optimize his time and interests the most,” he added.
Probably, Lee’s suggestions would be good for long-term Tesla (TSLA) shareholders. More importantly, Elon Musk continuing as Tesla CEO will unlock massive growth for the company in the coming years.
SpaceX to Ramp Up Starship Development Program amid Thoughts of a Holding Company Led by Musk
In another development, Elon Musk-led American aerospace manufacturer SpaceX is all set to ramp up its Starship Development Program in 2021. Elon Musk has said that SpaceX will double its launch-pad usage for the Starship tests. Besides, he also added that the company will soon start testing its Super Heavy Booster in a “few months”.
Recently, SpaceX shared the recap of its SN8 high-altitude flight test.
Recap of Starship SN8 high-altitude flight test → https://t.co/n2YPRBXehN pic.twitter.com/mi0ORTmcDD
— SpaceX (@SpaceX) December 24, 2020
At the PadB of Texas testing facility, SpaceX has set up its SN9 prototype of Starship. The SN9 will undergo active testing before starting its own flight test later on.