The collapse of Silicon Valley Bank has prompted investors to exit. But in the midst of this crisis, opportunities may open up for Tesla CEO and Twitter owner Elon Musk.
On Friday, in response to a tweet saying “Twitter should buy SVB and become a digital bank,” Musk tweeted: “I’m open to the idea.”
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The idea resonated with some Twitter users.
“What an opportunity,” wrote Twitter user Kevin Pfrath, who also runs the Meet Kevin Financial YouTube channel with 1.86 million subscribers. “2-3 years otherwise to get banking charter. Just make sure you go through those toxic properties with a fine-toothed comb!!”
Anyone touching a Silicon Valley bank these days might want to be careful. The bank failed after depositors rushed to withdraw money last week, and the Federal Deposit Insurance Corporation moved quickly to seize the bank’s assets.
To be sure, while Musk tweeted that he was open to considering a purchase of Silicon Valley Bank, no further details were provided.
Is Elon serious? Only Elon knows for sure. But you can still invest with the Serial Entrepreneur – here’s a look at how.
Tesla
Kasturi has built quite a few successful businesses. But he is best known as the co-founder and CEO of EV maker Tesla (TSLA).
According to Bloomberg, Musk’s biggest asset at the moment is Tesla Equity.
While Tesla stock is known to be volatile, it remains a giant in the automotive industry. With a market cap of around $540 billion, Tesla is several times bigger than Ford and General Motors combined.
And business is going in the right direction.
In 2022, Tesla’s vehicle deliveries grow 40% year over year to $1.31 million. Meanwhile its production rose 47% year-on-year to 1.37 million.
Tesla shares are also seeing a boom in Wall Street. For example, Morgan Stanley analyst Adam Jonas has an ‘overweight’ rating on Tesla and a price target of $220 — about 27% above where the stock sits today.
cryptocurrency
Once considered a niche asset, cryptocurrency has now entered the mainstream. A 2022 study by the CFA Institute revealed that 94% of state and government pension plans have investments in cryptocurrencies.
Of course, many investors learned about the cryptocurrency’s volatility through massive pullbacks. For example, bitcoin – the world’s largest cryptocurrency – is down 44% over the past 12 months.
Musk has been one of the more vocal supporters of cryptocurrency.
“I still own my bitcoin, ethereum or Doge fwiw and will not sell,” he said in a tweet early last year.
There are a lot of platforms that allow you to invest in crypto. Be aware of fees: Many exchanges charge up to 4% in commission fees just for buying and selling crypto. But some investment apps Charge 0%.
Read more: are here 3 easy ways to increase your hard earned money without a volatile stock market
real estate
In the tweet where Kasturi shared his thoughts on crypto, he also discussed the importance of owning “material things” in an inflationary environment.
“As a general principle, for those seeking advice from this thread, it is generally better to own physical things like houses or stocks in companies that make good products than dollars when inflation is high.”
Despite the Fed’s aggressive rate hikes, real estate remains a popular asset. The S&P CoreLogic Case-Shiller 20-City Composite Home Price NSA Index is up 4.7% over the past year.
As the cost of raw materials and labor increases, new assets become more expensive to build. And this increases the value of existing real estate.
Well-chosen assets can provide more than just an inflation hedge. Investors also get a steady stream of rental income.
But you don’t have to be a homeowner to start investing in real estate. there are plenty of real estate investment trust (REITs) as well as crowdfunding platforms that can get you started on becoming a real estate mogul.
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This article provides information only and should not be taken as advice. It is provided without warranty of any kind.