Elon Musk is an entrepreneur, inventor, and investor of South African and Canadian descent. Today, Elon Musk is most recognized for his many roles as CEO and CTO of SpaceX, CEO and chief product architect of Tesla Motors, chairman of SolarCity, Co-Chairman of OpenAI, creator and CEO of Neuralink, and CEO and Owner of Twitter.
He is the wealthiest individual in the world and one of the wealthiest in history.
Most people are aware that Elon made his initial fortune by creating PayPal, a widely utilized online payment system.
Childhood and Education
On June 28th, 1971, Elon Musk entered this world in Pretoria, South Africa. At the age of ten, Musk acquired his first computer and taught himself to code. The video game he built and titled “Blaster” was the first piece of software he sold when he was just 12 years old. In 1989, at the age of 17, he traveled to Canada to enroll at Queen’s University.
In 1992, he transferred to the University of Pennsylvania to pursue a double major in business and physics. Musk received his BA in economics before moving on to acquire a BS in physics and eventually a Ph.D. in energy physics. The internet surge, however, compelled him to abandon his studies at Stanford.
What is Elon Musk’s Net Worth?
As of October 2022, Elon Musk has an estimated net worth of $223.8 Billion as reported by Forbes’s Real-Time Billionaires List. As of this writing, Elon Musk owned about 24% of Tesla shares and 43% of SpaceX. In October 2021, Tesla’s market valuation was above $1 trillion.
Also in the same month, a $100 billion valuation was used to steal money from SpaceX. At that point, Elon’s wealth was hovering close to $300 billion.
Musk claimed in a 2019 legal deposition that he is cash-poor and that nearly all of his wealth comes from Tesla and SpaceX stock. According to the lawsuit, Musk makes $56,380 per year as Tesla’s starting wage.
Most years, he decides against accepting the payment. Musk owes Morgan Stanley and Goldman Sachs a combined total of $800 million at the time of the lawsuit. His mortgage debt at Morgan Stanley was at least $60 million. Since then, he has liquidated most of his real estate holdings and paid off his mortgages.
According to reports, he used up all of his liquid funds from the sale of previous businesses to start SpaceX.
Acquistion of Twitter
Mr. Musk became Twitter’s largest single shareholder on April 14 with a holding of 9.2 percent or 73.5 million shares valued at approximately $3 billion.
On April 1, the last trading day before his investment in Twitter was publicly publicized, he offered $54.20 per share, a 38 percent premium over the stock’s closing price.
Bloomberg said that Mr. Musk’s net worth has decreased by $46.5 billion despite his successful fundraising for his bid to acquire Twitter in the face of market volatility, the Russia-Ukraine crisis, and the Covid-19 outbreak.
After years of speculation about his wealth, Elon Musk is now the richest person in the world with a net worth of $223.8 Billion thanks to his recent purchase of Twitter for $44 billion.
Since the beginning of the year, Musk’s net worth has dropped by approximately $58.6bn, as reported by the Bloomberg Billionaires Index.
Musk is the second richest person in the world, but his fortune is $70 billion more than that of Bernard Arnault, the chairman of French luxury firm LVMH.
The CEO of Tesla was estimated to be worth $273.5 billion in January 2022, making him the richest person in the world at the time, according to Bloomberg.
As CEO of Tesla, Elon receives no salary. Instead, he has an incentive structure related to the company’s market capitalization that is both novel and attractive. Tesla was worth about $50 billion when the proposal was developed. Increases in market capitalization by $50 billion each constitute one of 12 possible milestones.
Because Elon achieved every goal, he is entitled to the full $100 billion bonus. Stock grants under this program typically occur once a quarter once the Board of Directors has certified that the relevant goal has been met.
Tesla Compensation Plan
The board of directors at Tesla proposed a pay package for Musk in January 2018 that was ultimately worth $100 billion. Over a 12-year period, the scheme could have netted Musk $100 billion in stock options for Musk.
Once Tesla’s valuation reaches $100 billion, the first tranche of options will be distributed (roughly double the value when the plan was announced). After then, each time the company’s market cap increased by $50 billion, Elon would get another installment.
None of the 12 tiers would have been met and he would have received no bonus at all.
As Tesla’s market valuation eventually soared above $1 trillion for the first time in October 2021, Elon unlocked all 12 tranches of the compensation plan within three years.
Real Estate Holdings
Previously, Elon had a California property portfolio worth $100 million. He still owns his 100-year-old, 16,000-square-foot mansion in Hillsborough, Northern California, which is situated on roughly 50 acres of land. He paid $23.364 million in 2017 to purchase the home.
He once had six properties in the affluent Bel-Air area of Los Angeles. For $17 million in 2012, he purchased a 20,000-square-foot home in Bel-Air; for $20 million in 2015, he purchased a 7,000-square-foot home; and for $24.25 million in 2016, he purchased a 9,300-square-foot home.
To everyone’s surprise, Elon announced in 2020 that he planned to sell all of his things, beginning with his houses in Los Angeles. As promised, he went ahead and sold off all of the properties. In December 2020, he made a single sale of four houses to a single buyer.
Elon Musk’s Entrepreneurship Journey
Zip2 was a software firm that catered to the newspaper industry by creating and selling an online “city guide.” The Chicago Tribune and The New York Times were among the companies that contracted with the business before it was sold to Compaq for $307 million.
Musk started X.com, an online payment service, with the $22 million he received from the sale of Zip2. After X.com joined Confinity, this became known as PayPal.
eBay paid $1.5 billion in stock to acquire PayPal after it had become the industry leader in online money transfers. Suddenly, Musk had an extra $165 million in his bank account.
Elon Musk started investing in Tesla and starting SpaceX and Solar City so that he could follow his dream of making the world a better place.
Musk’s quick increase in wealth can be attributed to the continued success of these three firms.
SpaceX is making strides in the space industry and hopes to cut the price of human spaceflight in half.
Tesla’s mission is to end the petroleum dependency of the car industry by creating competitively priced, aesthetically pleasing electric vehicles.
When it comes to installing solar energy systems in the United States, Solar City is second only to SunRun.
From as early as 2017, Musk has been vocal about his desire to acquire Twitter. By April of 2022, Musk had amassed a 9% share in Twitter, making him the company’s largest stakeholder. Musk had begun buying Twitter shares in January 2022, when he had only 5%.
Twitter filed a formal lawsuit against Musk in the Chancery Court of Delaware on July 12, 2022, alleging that Musk had violated a contract to acquire Twitter. Again changing his mind, Musk made an offer to buy Twitter in October 2022, this time for $54.20 a share. On October 27, the day the transaction closed, Musk fired several top Twitter executives, including CEO Parag Agrawal.
Elon Musk’s Personal Life
Elon also became a father again in late 2021, when one of his Neuralink employees had twins.
As of this writing, he is the father of ten kids.
Allegations of an affair between Elon Musk and Sergey Brin’s wife, who is also a co-founder of Google, surfaced in July 2022. Sergey’s four-year marriage to Nicole Shanahan apparently ended due to his extramarital affair.
Sergey had been one of Musk’s strongest fans for a long time, which must have hurt deeply. He was an early backer of Tesla and invested in several other Musk ventures.
Elon Musk, born in South Africa and raised in Canada, is a successful businessman, inventor, and investor. Elon Musk is the current CEO and CTO of SpaceX, as well as the chairman of SolarCity, the founder, and CEO of Neuralink, the CEO and owner of Twitter, and the lead product architect at Tesla Motors.
Forbes’ Real-Time Billionaires List estimates Elon Musk to be worth $223.8 billion as of October 2022.
Musk has been married three times, twice to the same woman, and has ten children with four different women.