Mahindra Group boss Anand Mahindra has congratulated Tesla and SpaceX CEO Elon Musk on acquiring the topmost position in the Bloomberg Billionaires Index. According to the index, the billionaire entrepreneur’s net worth stood at a whopping $243 billion, which is the combined net worth of Microsoft founder Bill Gates and veteran stock market investor Warren Buffett.
“Market value is now not just a multiple of current earnings but a multiple of audacity, ambition and courage. Rightly that is a formula that promises [to] outsize future earnings,” Mahindra tweeted. The latest tweet by Mahindra has garnered numerous likes and retweets at the time of writing this story.
Of these $243 billion, $148 billion were generated from the Tesla US equity, $40.3 billion were from private assets namely Space Exploration Technologies Corporation, and the remaining $6.30 billion were from miscellaneous liabilities, the index stated. It further stated that Musk’s net worth was equivalent to 1.16 per cent of the United States’ GDP and 2.89 per cent of the total wealth of the 500 richest people globally.
This, however, is not the first time the Mumbai-based business tycoon has backed the billionaire entrepreneur. Mahindra voiced his agreement on the latter’s comments regarding operations of automakers and the challenges that they face be it India, US, Europe or any other part of the world. “You said it, Elon Musk and we’ve been doing that for decades now. Still sweating and slaving away at it. It’s our way of life….,” Mahindra said.
Musk made comments about how large car companies make money while adding that production of cars is a tough nut to crack. “Production is hard. Production with positive cash flow is extremely hard,” he tweeted.
In another tweet, he explained how carmakers make money. “Large incumbent carmakers sell their cars at low to zero true margin. Most of their profit is selling replacement parts to their fleet, of which 70 per cent to 80 per cent are past warranty. Like razors and blades. New car companies lack this advantage. Also lack sales and services infrastructure,” he said.