American business tycoon Elon Musk has become slightly richer as his company SpaceX has outperformed his other company which makes electric cars.
CNBC reported last weekend, citing sources, that SpaceX’s market cap is now $33.3 billion while Tesla is valued at $32.8 billion. So, at least on paper, SpaceX is now richer than Tesla.
Recently, SpaceX made it to the news by launching 60 out of the 12,000 satellites that would form Musk’s futuristic StarLink network.
However, some astronomers have expressed concerns that these satellites are too close to the earth and hinder scientific discoveries and take away the pleasure of stargazing.
As far as Tesla is concerned, it’s possibly the most popular electric car company on the planet with its top-selling Model S. But reports have suggested that the company isn’t making any profits by selling off its vehicles.
Tesla reported $700 million in losses for the first quarter of 2019. Recently, Musk also sent an email to Tesla employees advising them to cut down on company expenses.
It’s believed that Musk could use SpaceX’s money to supercharge Tesla, according to Adam Jones of Morgan Stanley, who said investors shouldn’t rule out such a possibility.
“There’s a precedent for Elon Musk to think across his portfolio of companies,” he said, giving the example of Tesla’s $5 billion acquisition of SolarCity in 2016.