Musk vs Bezos showdown!

Elon Musk is worth 203 billion dollars.
Jeff Bezos is worth 197 billion dollars.

Elon Musk is now officially wealthier than Jeff Bezos and here’s why that doesn’t make a ton of sense.

Elon owns 22.4% of Tesla.
Tesla is currently worth 773 billion.

Bezos owns 10.3% of Amazon.
Amazon is worth 1.67 trillion.

Elon Musk also owns 54% of SpaceX, which is valued at 74 billion, but for this, Tesla is the only thing that needs to be talked about.

Comparing the two companies.

Tesla made 31 billion dollars in 2020.
Profit was 690 million.
2.2% margin

Growth had revenue go from 4 billion to 31 billion in five years, which is impressive at 675%, but revenue was 21 billion in 2018, for 47% growth in.

Next, Amazon

Amazon made 386 billion in 2020.
Profit is 21 billion.
5.4% margin

Growth from 2015 to 2020 was 260%, being 107 billion in 2015. Revenue growth since 2018 was higher than Tesla though, being 66%.

The other key to value is diversity.

Amazon has 25% of revenue not linked to the actual website, coming from things such as AWS, Whole Foods, Twitch and many more. There’s also multiple revenue models in the core business, with Prime, third party services and direct sales being part of that.

Tesla is 86% cars, with things such as solar or batteries being the other 14%.

So why is Elon worth more?

The guy has a personal brand with people, where they want to buy and have this insane idea of what it can be worth.

It doesn’t make a lot of sense, but there’s the cult of Musk.

Some of his stuff is really cool, but I think there’s the undeniable hype shadow to it.