Elon Musk is on the verge of becoming the world's first trillionaire, The Telegraph reported on Wednesday, citing analysts, as his electric vehicle company Tesla revealed a record quarter.
Because of the immense growth potential of SpaceX, Musk is on course to become the first individual with a 13-figure fortune, according to Morgan Stanley analyst Adam Jones.
According to the company's recent Q3 earnings report, for the quarter, Tesla earned $1.62 billion in (GAAP) net income, the second time it has crossed $1 billion. Net income was $331 million in the previous quarter.
Tesla's three-month revenue increased by 57% to $13.8 billion, while profits increased by 77% to $3.7 billion. Moreover, the company announced earlier this month that it had built 237,823 automobiles and delivered 241,300 in the first quarter.
Improved gross margins of 30.5% on its automotive division and 26.6% overall, both records for at least the last five quarters, drove the record results, according to the bank expert.
In this light, Tesla's plants were unable to operate at full capacity due to chip shortages and port congestion, according to the firm's report, but executives said that their production teams dealt with the problems "with ingenuity, agility and flexibility that is unparalleled in the automotive industry."
SpaceX Share in Elon's Wealth Only to Grow
According to Bloomberg's Billionaire Index, SpaceX currently accounts for approximately 17% of Elon Musk's $242 billion fortune, as of Wednesday.
However, Jones reportedly wrote in a note that SpaceX was "challenging any preconceived notion of what was possible and the time frame possible, in terms of rockets, launch vehicles and supporting infrastructure."
He also added that SpaceX is a single company that includes multiple companies ranging from earth observation and space infrastructure to deep-space exploration and other industries. Starlink, a satellite communications company, is the major reason behind the expert's $200 billion valuation projection.
Last month, Musk strengthened his position as the richest man on the planet, rising to the top of the world's billionaire list. Moreover, the Tesla and SpaceX CEO is now worth more than fellow billionaires Bill Gates and Warren Buffett combined, making him the world's richest person.