Wealth of Elon Musk
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Elon Musk is the wealthiest person in the world, with an estimated net worth of US$486 billion as of December 2024[update], according to the Bloomberg Billionaires Index, and $464 billion according to Forbes, primarily from his ownership stakes in Tesla, Inc. and SpaceX.[1][2][3] In November 2021, he became the first person in the world to have a net worth above $300 billion, and in December 2024, he became the first person to reach a net worth of $400 billion.[4]
History
[edit]Elon Musk made $175.8 million when PayPal was sold to eBay in October 2002.[5] He was first listed on the Forbes Billionaires List in 2012, with a net worth of $2 billion.[6]
Musk paid $455 million in taxes on $1.52 billion of income between 2014 and 2018.[7] According to ProPublica, Musk paid no federal income taxes in 2018.[8] He stated his 2021 tax bill was estimated at $12 billion based on his sale of $14 billion worth of Tesla stock.[7]
Musk has repeatedly described himself as "cash poor",[9][10] and has "professed to have little interest in the material trappings of wealth".[9] In May 2020, he pledged to sell almost all physical possessions.[10] Musk has defended his wealth by saying he is accumulating resources for humanity's outward expansion to space.[11]
At the start of 2020, Elon Musk had a net worth of $27 billion.[12] By the end of the year his net worth had increased by $150 billion, mostly driven by his ownership of around 20% of Tesla stock.[13] During this period, Musk's net worth was often volatile. For example, it dropped $16.3 billion on September 8, the largest single-day plunge in Bloomberg Billionaires Index's history at the time.[14] In November of that year, Musk passed Facebook co-founder Mark Zuckerberg to become the third-richest person in the world; a week later he passed Microsoft co-founder Bill Gates to become the second-richest.[15]
In January 2021, Musk, with a net worth of $185 billion, surpassed Amazon founder Jeff Bezos to become the richest person in the world.[16] Bezos reclaimed the top spot the following month.[17] On September 27, 2021, after Tesla stock surged, Forbes announced that Musk had a net worth of over $200 billion,[18] and was the richest person in the world. In November 2021, Musk became the first person to have a net worth of more than $300 billion.[19]
On December 30, 2022, due to declining stock values in Tesla, Musk had lost $200 billion from his net worth, the first person in history to do so,[20][21] which was recognized by Guinness World Records in January 2023.[22]
Musk's net worth surged after the 2024 United States presidential election, and in December 2024, he became the first person to have a net worth of more than $400 billion.[4]
As a primary customer, the federal government of the United States has signed contracts worth $20 billion with SpaceX as of November 2024[update].[23]
Sources of wealth
[edit]Around 75% of Musk's wealth was derived from Tesla stock in November 2020,[15] a proportion that fell to about 37% as of December 2022,[a] after selling nearly $40 billion in company shares since late 2021.[24] Musk does not receive a salary from Tesla; he agreed with the board in 2018 to a compensation plan that ties his personal earnings to Tesla's valuation and revenue.[13] The deal stipulated that Musk only received the compensation if Tesla reached certain market values.[25] It was the largest such deal ever done between a CEO and a company board.[26] In the first award, given in May 2020, he was eligible to purchase 1.69 million Tesla shares (about 1% of the company) at below-market prices, which was worth about $800 million.[26][25]
In January 2024, Delaware Judge Kathaleen McCormick ruled in a 2018 lawsuit that Musk's $55 billion pay package from Tesla be rescinded.[27] McCormick called the compensation granted by the company's board "an unfathomable sum" that was unfair to shareholders. In response to the ruling, Musk posted on X: "Never incorporate your company in the state of Delaware."[28] A re-ratification shareholders' vote passed in mid-June 2024, although much follow-up litigation is expected, including a lawsuit filed by a Tesla investor beforehand that alleged Musk employed "coercive tactics" to move the vote in his favor.[29]
Management
[edit]Musk's personal wealth is managed by his family office called Excession LLC, formed in 2016 and run by Jared Birchall.[30]
Musk Foundation
[edit]Giving
[edit]Education
[edit]Musk has asserted that declining birth rates pose an existential threat to humanity and has donated $10 million to the University of Texas at Austin to further research on the potential risks.[33]
In December 2023, tax records revealed that Musk had donated $100 million to a new foundation, "The Foundation", set up to create a primary and secondary school focused on teaching science, technology, engineering, and math (STEM) subjects.[34][35] The foundation included plans to expand the project to the university level accredited by the Southern Association of Colleges and Schools.[34] In 2022, Musk allocated Tesla, Inc. stock valued at $2.2 billion to The Foundation.[36]
Technology
[edit]In January 2015 Musk donated $10 million to the nonprofit Future of Life Institute, an organization focused on challenges posed by advanced technologies.[37]
Politics
[edit]According to the Wall Street Journal, Musk donated over $50 million in the fall of 2022 to Citizens for Sanity, a political action committee (PAC) aligned with the policies of Donald Trump.[38]
Musk donated more than $10 million in 2023 to support the Ron DeSantis 2024 presidential campaign.[39]
In 2024, Musk created America PAC[40] to support the Donald Trump 2024 presidential campaign and donated more than $270 million to it.[41][42]
Musk gave $20.5 million to RBG PAC which supported Donald Trump in the 2024 Presidential election.[43]
See also
[edit]Notes
[edit]- ^ According to the Wall Street Journal, he was worth $140 billion, with $52 billion of that attributable to his ownership of Tesla stock.
References
[edit]- ^ "The Top 10 Richest People In The World (February 2024)". Forbes. Archived from the original on February 6, 2024. Retrieved 6 February 2024.
- ^ "Bloomberg Billionaires Index". Bloomberg L.P. Archived from the original on July 8, 2017. Retrieved November 9, 2024.
- ^ "Real Time Billionaires". Forbes. Archived from the original on February 10, 2014. Retrieved August 27, 2017.
- ^ a b Maruf, Ramishah (December 11, 2024). "Elon Musk becomes the first person to reach a net worth of $400 billion". CNN. Retrieved December 12, 2024.
- ^ Klebnikov, Sergei (August 8, 2017). "8 Innovative Ways Elon Musk Made Money Before He Was a Billionaire". Money. Archived from the original on August 9, 2020. Retrieved April 13, 2021.
- ^ Melby, Caleb (March 12, 2012). "How Elon Musk Became A Billionaire Tver". Forbes. Archived from the original on July 11, 2022. Retrieved February 17, 2021.
- ^ a b Browne, Ryan (December 20, 2021). "Elon Musk says he will pay over $11 billion in taxes this year". CNBC. Archived from the original on November 3, 2022. Retrieved March 3, 2022.
- ^ Mangan, Dan (June 8, 2021). "Bezos, Buffett, Bloomberg L.P., Musk, Icahn and Soros pay tiny fraction of wealth in income taxes, report reveals". CNBC. Archived from the original on October 5, 2022. Retrieved June 8, 2021.
- ^ a b Pendeleton, Devon (January 6, 2021). "Elon Musk Surpasses Jeff Bezos to Become World's Richest Person". Bloomberg L.P. Archived from the original on January 6, 2021. Retrieved February 17, 2021.
- ^ a b Higgins, Tim (May 8, 2020). "Elon Musk, Tech's Cash-Poor Billionaire". The Wall Street Journal. Archived from the original on February 16, 2021. Retrieved February 17, 2021.
- ^ Woodward, Alex (March 22, 2021). "Bernie Sanders responds to Elon Musk's space travel plans with call for progressive taxes". The Independent. Archived from the original on April 13, 2021. Retrieved April 13, 2021.
- ^ Frank, Robert (January 7, 2021). "Elon Musk is now the richest person in the world, passing Jeff Bezos". CNBC. Archived from the original on April 6, 2021. Retrieved April 13, 2021.
- ^ a b O'Kane, Sean (January 7, 2021). "Elon Musk passes Jeff Bezos to become the richest person on Earth". The Verge. Archived from the original on October 9, 2022. Retrieved February 17, 2021.
- ^ Pitcher, Jack (September 8, 2020). "Elon Musk Loses Record $16.3 Billion With Wild Wealth Swings". Bloomberg. Archived from the original on September 27, 2020. Retrieved February 23, 2021.
- ^ a b Neate, Rupert (November 14, 2020). "Elon Musk overtakes Bill Gates to become world's second-richest person". The Guardian. Archived from the original on January 14, 2021. Retrieved February 17, 2021.
- ^ "Elon Musk becomes world's richest person as wealth tops $185bn". BBC News. January 7, 2021. Archived from the original on January 8, 2021. Retrieved February 17, 2021.
- ^ Palmer, Annie (February 16, 2021). "Jeff Bezos overtakes Elon Musk to reclaim spot as world's richest person". CNBC. Archived from the original on February 16, 2021. Retrieved February 17, 2021.
- ^ Cai, Kenrick (September 27, 2021). "Elon Musk Eclipses $200 Billion To Become Richest Person in the World Again". Forbes. Archived from the original on September 28, 2021. Retrieved September 28, 2021.
- ^ Haverstock, Eliza (November 2, 2021). "Elon Musk Is The First Person Worth More Than $300 Billion". Forbes. Archived from the original on May 31, 2022. Retrieved November 4, 2021.
- ^ Chappatta, Brian (December 30, 2022). "Elon Musk Becomes First Person Ever to Lose $200 Billion". Bloomberg. Archived from the original on September 19, 2023. Retrieved September 19, 2023.
- ^ Woodward, Alex (January 1, 2023). "Elon Musk is the first person in history to lose $200 billion". The Independent. Archived from the original on January 4, 2023. Retrieved January 11, 2023.
- ^ Gans, Jared (January 7, 2023). "Elon Musk secures world record for largest-ever loss of personal fortune". The Hill. Archived from the original on January 9, 2023. Retrieved January 10, 2023.
- ^ Isidore, Chris (2024-11-20). "How much of Musk's wealth comes from tax dollars and government help? | CNN Business". CNN. Retrieved 2025-01-05.
- ^ Higgins, Tim (December 23, 2022). "Elon Musk's Finances Complicated by Declining Wealth, Twitter Pressures". The Wall Street Journal.
- ^ a b Sorkin, Andrew Ross (January 23, 2018). "Tesla's Elon Musk May Have Boldest Pay Plan in Corporate History". The New York Times. Archived from the original on February 11, 2021. Retrieved February 17, 2021.
- ^ a b O'Kane, Sean (May 28, 2020). "Elon Musk reaches first Tesla compensation award worth nearly $800 million". The Verge. Archived from the original on February 2, 2021. Retrieved February 17, 2021.
- ^ Mangan, Dan; Lora Kolodny (January 30, 2024). "Elon Musk's $56 billion Tesla compensation voided by judge, shares slide". CNBC. Archived from the original on January 31, 2024. Retrieved January 31, 2024.
- ^ Kharpal, Arjun; Lora Kolodny (February 1, 2024). "Elon Musk says Tesla will hold a shareholder vote to incorporate in Texas after Delaware pay snub". CNBC. Archived from the original on February 6, 2024. Retrieved February 6, 2024.
- ^ Hals, Tom. "Elon Musk convinced Tesla investors to back his pay. Now he must persuade a judge". Reuters. Retrieved June 19, 2024.
- ^ Jin, Hyunjoo; Marshall, Elizabeth Dilts (April 26, 2022). "Funding obscured: The family office behind Musk's $44 billion Twitter buyout". Reuters. Archived from the original on July 21, 2023.
- ^ Harris, Mark (2019-01-23). "How Elon Musk's secretive foundation hands out his billions". The Guardian. ISSN 0261-3077. Retrieved 2024-12-09.
- ^ "2022 Form 990 for Musk Foundation | Cause IQ". www.causeiq.com. Retrieved 2024-12-09.
- ^ Becker, Andrea (October 16, 2023). "Elon Musk's Feud With Grimes Is a Warning". slate.com. Slate. Retrieved 13 October 2024.
- ^ a b Kay, Grace. "Elon Musk plans to launch his own university in Texas, report says". Business Insider. Retrieved 2023-12-14.
- ^ Tax Filing
- ^ Cite error: The named reference
:0was invoked but never defined (see the help page). - ^ Kosoff, Maya (January 15, 2015). "Elon Musk Is Donating Million To Keep Killer Robots From Taking Over The World". Business Insider. Archived from the original on October 10, 2017. Retrieved December 15, 2015.
- ^ Mattioli, Dana; Palazzolo, Joe; Safdar, Khadeeja (2024-10-02). "Elon Musk Gave Tens of Millions to Republican Causes Far Earlier Than Previously Known". The Wall Street Journal. Retrieved 2024-12-12.
- ^ Shapiro, Julia (3 October 2024). "Musk donated millions to GOP causes as early as 2022: Reports". thehill.com. The Hill. Retrieved 1 November 2024.
- ^ Sullivan, Helen. "Elon Musk denies report he will donate $45m a month to Trump Super Pac". theguardian.com. Retrieved 3 August 2024.
- ^ Ulmer, Alexandra; Levy, Rachael (October 16, 2024). "Musk gave $75 million to pro-Trump group, becoming a Republican mega donor". Reuters.
- ^ Durkee, Alison (October 24, 2024). "Elon Musk Is Now Trump's 2nd-Biggest Financial Backer: Donates more than $270 Million To Super PAC". Forbes.
- ^ PIPER, JESSICA. "Elon Musk was behind mysterious pro-Trump super PAC that invoked Ruth Bader Ginsburg". politico.com. Politico. Retrieved 9 December 2024.
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