How much is Elon Musk Worth?
Elon Musk Net Worth:
$164 Billion
Elon Musk's Salary:
$0
Elon Musk Net Worth and Salary: Elon Musk is a South African-born Canadian-American executive, inventor and investor who has a net worth of $164 billion. Though he wears many hats and is constantly topping his latest project, he is currently best known for being as the CEO and CTO of SpaceX, CEO and chief product architect of Tesla Motors and chairperson of SolarCity. He is also one of the wealthiest people on the planet.
As of this writing, Elon Musk owns roughly 20% of
Tesla's outstanding shares and 48% of the privately held SpaceX. He also
controls roughly $50 billion worth of unrealized gains on vested options earned
from an extremely ambitious and generous pay package negotiated in 2018.
KEY FACTS
·
Sold first company
Zip2 to Compaq in 1999 for $340 million
·
Invested a portion
of his windfall into X.com
·
X.com became
Paypal. Paypal sold to eBay in 2002 for $1.5b
·
Owns 48% of SpaceX
which is valued at $46 billion
·
Owns 22% of Tesla
·
Net Worth increased
$142 billion in 2020
·
Once testified that
he his "cash poor" and has $500 million worth of debt
·
Once owned $100
million worth of real estate
·
Sold six LA homes
in 2020.
Net worth History: On January 1, 2020, Elon's net worth was $28 billion. He ended 2020
with a net worth of $170 billion. Elon's net worth topped $70 billion for
the first time on July 10, 2020. At that point, roughly, $15 billion was
attributable to the privately held SpaceX and the remaining $55 billion was
from Tesla.
On July 13, 2020
when Elon's net worth hit $80 billion for the first time, $15 billion came from
SpaceX and $65 billion came from Tesla. In August 2020, two important factors
pushed Elon's net worth above $90 billion for the first time. First, in
mid-August Tesla shares hit an all-time high of $1,900. At that level, the
company's total market cap was $350 billion. Elon's 20% stake was worth $70
billion. The second factor was an increased valuation of SpaceX, which was
officially confirmed on August 18, 2020. The fundraising round increased
SpaceX's private valuation to $46 billion, up from $36 billion. At a valuation
of $46 billion, Elon's 48% stake adds $22 billion in pre-tax wealth to Elon's
net worth.
On November 17,
2020, Elon's net worth topped $100 billion for the first time. At that point,
he surpassed Mark Zuckerberg to become the third-richest person on the planet
for the first time. On November 24, 2020, Elon's net worth topped $128 billion
for the first time. At that point, he surpassed Bill Gates to become to the
second-richest person in the world for the first time. On that day, he was $54
billion away from Jeff Bezos' $184 billion net worth and his net worth had
officially increased $100 billion since January 1, 2020.
On January 7, 2021,
Elon's net worth hit $195 billion. On this day, Elon eclipsed Jeff Bezos as the
richest person in the world for the first time. On January 8, 2021, Elon ended
the week with a net worth of $210 billion after starting the week worth $170
billion.
Tesla Salary: Elon takes no salary as CEO of Tesla. He instead has a highly unusual
and potentially extremely lucrative bonus plan tied to the company's market cap
milestones. When the plan was forged, Tesla was worth around $50 billion. When
Tesla reached a market cap of $100 billion – and held that value for six
months, Elon would be given a bonus of just under $600 million. There are 12
total milestones based on $50 billion market cap increases. If Elon hits every
single milestone (there is no time restriction), he has the ability to earn
$100 billion in bonuses.
Early Life: Elon Musk was born June 28, 1971 in Pretoria, South Africa. Musk
bought his first computer at the age of 10 and taught himself how to program.
When he was 12, he made his first software sale—a game he created called
Blaster. At age 17, in 1989, he moved to Canada to attend Queen's University,
but left in 1992 to study business and physics at the University of
Pennsylvania. Musk graduated with an undergraduate degree in economics and continued
to earn a second bachelor's degree in physics then pursued a PhD in energy
physics. He dropped out of Stanford University, however, to become a part of
the internet boom.
Success: Musk's first company, Zip2 Corporation, was an online city guide. In
1999, a division of Compaq Computer bought Zip2 for $307 million in cash and
$34 million in stock options. Also in 1999, Musk co-founded X.com, an online
financial services/payments company. An X.com acquisition the following year
led to the creation of PayPal, as it is known today, and in 2002 PayPal was
acquired by eBay for $1.5 billion in stock.
Musk founded his
third company, Space Exploration Technologies Corporation (SpaceX), in 2002
with the intention of building spacecraft for commercial space travel. By 2008,
SpaceX was well established and NASA awarded the company the contract to handle
cargo transport for the International Space Station—with plans for astronaut
transport in the future.
Next was Tesla
Motors, an automobile company dedicated to producing affordable, mass-market
electric cars. Martin Eberhard and Marc Tarpenning founded Tesla in 2003. Elon
along with Ian Wright and J.B. Straubel were the company's first employees and
retroactively named co-founders.
With a stake in the
company taken by Daimler and a strategic partnership with Toyota, Tesla Motors
launched its initial public offering in June 2010, raising $226 million. In
2012, Musk and SpaceX made history when the company launched its Falcon 9
rocket into space with an unmanned capsule. In 2013, he released a concept for
a new form of transportation called the Hyperloop, intended for travel at
speeds greater than 700 mph to commute between major cities. As opposed to
railroads, the Hyperloop would use tubes for transportation. Musk says the
Hyperloop could take from seven to 10 years to be built, tested and ready for
use.
Elon Musk Net Worth Details: As of this writing, Elon Musk owns 48% of rocket
maker SpaceX and 20% of Tesla. He also owns 57 million vested Tesla options. He
has reportedly pledged 11 million shares as collateral against his personal
obligations, which according to documents filed as part of a defamation
lawsuit, includes around $500 million in personal debt and bank loans.
In a 2019 legal
deposition, Musk explained that he actually is somewhat cash-poor and that 99%
of his personal wealth is attributable to shares in Tesla and SpaceX. The
lawsuit also revealed that Musk's base salary at Tesla is $56,380. He declines
the salary in most years. Musk has $500 million worth of debt; $209 million of
worth is owed to Morgan Stanley. At least $60 million of his Morgan Stanley
debt is home mortgage-related. Roughly, $213 million worth of his debt is owed
to Goldman Sachs.
Nearly 50% of his Tesla shares are pledged as collateral to Goldman and Morgan Stanley. He reportedly burned through all of his liquid cash from previous business sales to launch SpaceX.
Tesla Compensation
Plan: In January 2018, the Tesla board
unveiled a compensation plan for Musk that could potentially be worth $100
billion. The plan calls for Musk to receive up to $100 billion in stock options
over a decade in 12-tranches. The first chunk of options are granted once Tesla
hits a market cap of $100 billion (roughly double the value when the plan was
announced). From that point on, Elon gets another of the tranches every time
the company increases in market cap by $50 billion.
Long story short, if Elon managed to grow Tesla's
market cap to $650 billion, he would earn out the full $100 billion. If he does
not achieve any of the 12 tranches, he gets zero compensation. In other words,
because Elon declines his base salary, he receives no compensation at all until
he hits $100 billion market cap, the first milestone.
Personal Life: Elon has been married three times, twice to the
same actress Talulah Riley. He was married to Canadian author Justine Wilson
from 2000 to 2008. They share five sons. He has also been romantically involved
with actress Amber Heard and Canadian musician Grimes. In May 2020, Grimes and
Elon welcomed a baby boy named X ร A-Xii.
Real Estate
Holdings: Elon previously owned $100 million
worth of real estate in California alone. In the Northern California town of Hillsborough,
he continues to own a 100-year-old, 16,000 square-foot villa that sits on
nearly 50-acres. He bought this house for $23.364 million in 2017.
In Southern California, he at one time owned six
homes in the Los Angeles neighbourhood of Bel-Air. His Bel-Air footprint
included a 20,000 square-foot house that he bought for $17 million in 2012, a
7,000 square-foot house he bought for $20 million in 2015 and a 9,300
square-foot house he purchased in 2016 for $24.25 million. In 2020, Elon
stunned the world by announcing his intention to sell all of his worldly
possessions, starting with his LA homes. True to his word, he proceeded to sell
off each home. He sold four homes at once to one buyer in December 2020.
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