Elon Musk is ascending in late 2024 and, depending on one’s point of view, is drawing rave reviews or visceral angst. Like Gotham City’s most famous billionaire, Bruce Wayne, Musk doesn’t seem to care about the naysayers — not when he’s busy running company brands that soar into space, attracting millions to digital public squares and building new technologies that change the way people live and do business.
That’s not to say he’s the Caped Crusader of Wall Street. Even though he’s worth an estimated $331 billion as of Nov. 19, according to the Bloomberg Billionaires Index, and the seven companies he cofounded are worth way more than that, Musk isn’t in the business of picking stocks. But armies of investors are happy to move markets with their portfolios, which have plenty of room for Musk-influenced stocks and cryptocurrencies.
[Sign up for stock news with our Invested newsletter.]
“The recent U.S. presidential election illustrated how Musk has become a brand of his own in recent years,” says Maxim Manturov, head of investment research at Freedom Finance Europe. “Tesla crossed a $1 trillion market capitalization upon Trump’s victory and the news that Musk would be a core component of the president-elect’s cabinet.”
Which Elon Musk-linked investments lead the list as 2024 draws to a close? Here’s a snapshot of the ultimate Musk investment portfolio and what’s happening with each asset that’s directly or indirectly affected by his billionaire brand:
— Tesla Inc. (ticker: TSLA)
— PayPal Holdings Inc. (PYPL)
— Nvidia Corp. (NVDA)
— Modine Manufacturing Co. (MOD)
— Meta Platforms Inc. (META)
— Bitcoin (BTC)
[READ: 10 Stocks Jeff Bezos Is Buying]
Tesla Inc. (TSLA)
Year-to-date return: 39.3%
TSLA shares have gained nearly 40% year to date, and the stock is up 57% over the past month as of Nov. 19.
Why the run-up? Analysts point to CEO’s Musk’s high-profile presence in President-elect Donald Trump’s campaign, which resulted in a three-tier GOP victory and Musk’s new role as government-overspending slayer come Jan. 20.
His ties to Trump have undoubtedly been a social media sensation, but electric vehicle maker Tesla’s shares are up for more reasons than that. “Tesla is obviously leading in the EV revolution, but there’s so much more going on with TSLA,” says Nick Scibilia, CEO and co-founder of Orbit, a social investing platform. “The advancements they’re making in AI and autonomous driving are incredible. Analysts are projecting a $1 trillion opportunity in this space, which puts Tesla in a strong position for long-term growth.”
Other investing experts agree. “Tesla continues to dominate the EV market, and its focus on innovation in energy solutions makes it a strong pick for long-term growth,” says Blake Morgan, managing partner of Mineral Vault, an energy industry crypto tokenization company based in the British Virgin Islands.
Morgan sees Musk as much more than a CEO. “His ability to disrupt industries and capture public attention makes him a major driver of investor sentiment,” he says. “Whether it’s Tesla, SpaceX or Bitcoin, Musk’s words and actions often move markets. He’s repeatedly proven that his involvement can significantly boost a stock’s visibility and value.”
PayPal Holdings Inc. (PYPL)
YTD return: 36.9%
While Musk no longer has financial ties to PayPal, in 2000, his startup X.com merged with Peter Thiel’s online payment company, Confinity, which created the online payment system. When eBay Inc. (EBAY) acquired PayPal in 2002, Musk received between $165 million and $180 million for his stake in the company.
PayPal continues to rack up share-price gains that far outpace the S&P 500 in 2024, hitting a year-to-date return of nearly 37%. (The S&P 500 has returned 24.1% year to date.) PayPal beat earnings estimates in the third quarter, reporting a 22% earnings rise and a 6% revenue increase compared to the same period in 2023.
That growth comes in part from Braintree, a digital transactions processor that counts Uber Technologies Inc. (UBER), Airbnb Inc. (ABNB), DoorDash Inc. (DASH), Spotify Technology SA (SPOT) and Paymentus Holdings Inc. (PAY) as customers.
“This is now the second consecutive quarter in more than two years that Braintree is meaningfully contributing to transaction margin dollar growth,” PayPal CEO Alex Chriss said on the company’s Q3 earnings call.
Nvidia Corp. (NVDA)
YTD return: 196.9%
Musk made news in November when his artificial intelligence company xAI announced it would raise $6 billion at a $50 billion valuation. The company said the cash would likely be used to buy 100,000 Nvidia chips, the bulk of which are expected to go to the company’s Memphis data center, where engineers are working on Tesla’s “Full Self-Driving” technology. The move is expected to drive NVDA shares further upward (the stock is up 197% so far in 2024).
Nvidia will release its third-quarter numbers after the bell on Nov. 20, but it has reportedly pegged Q3 revenue at $32.5 billion. Some analysts expect more from Nvidia, with Radio Free Mobile’s Richard Windsor calling for NVDA revenues to clock in at $34 billion for the quarter.
“Nvidia is another Musk stock to highlight,” Scibilia says. “They’re the backbone of so much innovation, providing the GPUs that power Tesla’s autonomous systems and playing a huge role in AI across multiple industries. With demand for AI and EV technologies skyrocketing, Nvidia is set to benefit on a massive scale.”
Modine Manufacturing Co. (MOD)
YTD return: 127.8%
Modine shares are skyrocketing in 2024, rising by 128% thanks primarily to a 30,733-share purchase by Vanguard Group in late September, giving the fund giant a nearly 5 million-share stake in the thermal management products and solutions company, according to a GuruFocus report. Racine, Wisconsin-based Modine is a business relationship for Tesla rather than a startup of Musk’s, but it is a direct beneficiary of the electric vehicle trend and Tesla’s success. Modine has supplied battery chilling units for Tesla’s Model S since the luxury car’s launch in 2012.
Analysts are generally bullish on the stock, with five industry analysts noting a consensus “outperform” call along with a one-year price target of $148. The stock closed at $136.01 per share on Nov. 19.
Forward guidance is also bullish. Analysts call for 18.7% earnings-per-share growth for 2024, which easily bests the industry average of 9.5%, according to Zacks Equity Research.
Meta Platforms Inc. (META)
YTD return: 58.9%
How is this a Musk stock, you ask? It’s an inverse relationship. Musk-controlled X is the fifth-largest social media platform in the world, but the company is privately held, so shares are unavailable to the public. Yet its impact on the social media sector is substantial, so it’s worth a closer look at a publicly traded social media stock like META, which has been directly affected by X’s missteps.
“X’s challenges under Musk’s leadership have opened opportunities for competitors to capture disaffected users and advertisers in the wake of Musk’s takeover,” says Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors in El Segundo, California.
Schulman notes that Meta, which owns Facebook, Instagram, Threads and WhatsApp, maintains a dominant position in the social media sector and has experienced growth in advertising revenue and user engagement since Musk took over the helm at X. “Other platforms like Bluesky and Mastodon have also seen user growth, but neither company is public, and Mastodon occasionally suffers from overzealous moderation of posts,” he says.
Additionally, many active users maintain their X accounts yet open alternate accounts on other social media sites like Bluesky, Mastodon and Threads, Schulman notes. “They’re reposting their same content on each site to capture the widest audience,” he says. “It is akin to influencers posting on both TikTok and Instagram.”
Meta shares are up 58.9% so far in 2024 but are down 2.7% in the past month, even as cash flow remains robust and revenues are estimated to rise 20% in 2024. Analysts say the stock could crest $599 per share by year-end, up from its Nov. 19 closing price of $561.09.
Bitcoin (BTC)
YTD return: 123%
Bitcoin is in skyrocket mode in late 2024, up 123% year to date, as tracked by the CoinDesk Bitcoin Price Index (XBX). Per-coin Bitcoin pricing stood around $93,800 in late November; that’s up 41% over the past month alone.
In 2024, Bitcoin growth is largely attributed to massive inflows into crypto exchange-traded funds, or ETFs, and the new spot Bitcoin ETFs in particular. Equally crucial to crypto investors is Trump’s clear backing of cryptocurrencies, with a nod toward passing Bitcoin-friendly legislation over the next four years.
Of course, Musk is also a big supporter of cryptocurrencies, with a particular affection for Dogecoin (DOGE). In an April 2019 tweet, Musk said, “Dogecoin might be my favorite cryptocurrency. It’s pretty cool.”
In February 2021, Tesla made a $1.5 billion investment in Bitcoin while announcing the EV giant would accept BTC as payment from its customers. The announcement sent the price of Bitcoin up 15.4%. The company has flipped its position on accepting BTC several times since, but sector trends are pointing upward in November 2024.
“Musk’s advocacy for Bitcoin has made it a centerpiece of the crypto market,” Morgan says. “With increased regulatory focus from Washington, Bitcoin faces scrutiny, but its decentralized nature and institutional adoption keep it a strong player.”
“Musk’s influence and willingness to embrace crypto suggest continued relevance, even in a stricter regulatory environment,” he adds.
Scibilia supports that sentiment, adding that Musk’s support for Bitcoin has been “a game-changer” in the crypto space. “He’s been very vocal about it, from Tesla’s investments to his public endorsements, and those actions have often moved the market significantly,” Scibilia says. “It’s clear he sees Bitcoin as an important asset.”
With a new administration in place, Bitcoin could easily grow stronger. “There’s talk of positioning the U.S. as a leader in the crypto space, which includes ideas like building a national Bitcoin reserve and forming a dedicated advisory council,” Scibilia adds. “These initiatives have already influenced market sentiment; Bitcoin recently hitting $93,000 shows just how optimistic people are right now.”
[READ: Bitcoin vs. Ethereum: Which Is the Better Buy?]
More from U.S. News
7 Best Lithium Stocks and ETFs to Buy
Will the Stock Market Crash in 2024? 7 Risk Factors
Can I Retire at Age 70 With $500K Saved?
6 Best Elon Musk Investments to Buy originally appeared on usnews.com
Update 11/20/24: This story was previously published at an earlier date and has been updated with new information.
