3 Reasons Why Elon Musk ‘Deserves’ To Be The World’s Richest Person

(FILES) In this file photo  Elon Musk, founder of SpaceX, speaks during the Satellite 2020 at the Washington Convention CenterMarch 9, 2020, in Washington, DC. - NASA on April 30, 2020 awarded almost $1 billion in contracts to three space companies including those owned by Elon Musk and Jeff Bezos to develop lunar landers as the United States seeks to return human beings to the Moon. The human landing system contracts were given to Musk's SpaceX, Bezos' Blue Origin and Dynetics, who receive $967 million. (Photo by Brendan Smialowski / AFP)

Tesla Inc (NASDAQ: TSLA) CEO Elon Musk is the world’s richest person with a net worth of around $209 billion and he certainly earned the prestigious title, New Street Research’s Pierre Ferragu said in a Fox Business interview.

1. Changing The World: Musk is at the forefront of transitioning the world towards clean and solar energy and ushering in the next generation of space travel capabilities, Ferragu said.

“That’s a good basis to become the world’s richest man in the world,” he said.

2. Market Position: Meanwhile, Jeff Bezos, founder of Amazon.com, Inc. (NASDAQ: AMZN), is the world’s second-richest person with Amazon having already achieved a dominant market position.

By comparison, Tesla’s market share in the global auto market isn’t even at 1% so it’s fascinating Musk is the richest person with such a minuscule share of the market, according to Ferragu.

3. Just Getting Started? Tesla’s pace of innovation is accelerating at an exponential rate and it will show in market share gains over the years, Ferragu said. In fact, Tesla could very well become the world’s largest car manufacturer in the world by 2030.

Tesla will also by default be the world’s largest clean energy company and warrant a valuation in the trillions of dollars.

But in the near term, investors may want to take a cautious approach to the stock, he said. The company’s multi-year long growth trajectory may have implied the current valuation is difficult to justify.

“That would be my only cautious statement on the name,” Ferragu said.

Tesla’s stock trade around $814.66 at publication time.

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