Tesla CEO Elon Musk gave 11.5 million shares of his stake within the electrical automaker to an undisclosed charity final yr, shares price about $1.9 billion on the time they had been donated.
The donation would make him the second largest charitable donor in 2022, in keeping with a rating of the Chronicle of Philanthropy, which was compiled earlier than Musk’s submitting. The Chronicle’s rating lists Bill Gates as No. 1 with $5.1 billion in donations, adopted by Michael Bloomberg at $1.7 billion.
Musk’s web price on the finish of 2022 stood at $137 billion, in keeping with Forbes’ actual time billionaire tracker, so the $1.9 billion represented about 1.4% of his web price at the moment.
Musk’s 2022 donations are down from the estimated worth of his donations reported for 2021, when he reported that he had given 5 million Tesla
(TSLA) shares, then price an estimated $5.7 billion, on the finish of that yr. A 3-for-one inventory break up in Tesla
(TSLA) shares in August of final yr means the variety of shares he donated in 2021 was additionally 30% better than his 2022 donations, on a split-adjusted foundation.
Musk’s donations in 2021 additionally had been to an undisclosed charity. They got here at a time that he had been challenged by David Beasley, the UN meals program director, to donate $6 billion to battle international starvation. Beasley had stated a donation of that dimension might feed greater than 40 million individuals throughout 43 nations which can be “on the brink of famine.” Musk responded on Twitter at the moment if the World Food Program “can describe on this Twitter thread exactly how $6B will solve world hunger, I will sell Tesla stock right now and do it.”
Musk’s 2021 donation of Tesla shares got here quickly after that alternate, however there was by no means any affirmation as to the place the shares went to.
The most up-to-date donation of shares represented 1.6% of Musk’s stake within the firm on the finish of final yr when contemplating each shares he held outright and the vested choices he holds to buy extra shares.
Since the top of the yr he had one other 25.3 million choices vest when the corporate achieved sure monetary targets, a grant the corporate had already stated was possible to happen. So Musk made the donation realizing that he would quickly obtain choices to purchase twice a many shares at a nominal worth.
Musk did promote a far bigger portion of his Tesla stake within the final 18 months than he has donated. First he offered $16.4 billion price of Tesla inventory in 2021, with most going to to pay a big earnings tax invoice he confronted for exercising choices in 2021 earlier than they expired. Then in 2022 he offered $22.9 billion price of Tesla shares as he raised money for his buy of Twitter.
Tesla shares had their worst yr on file in 2022, dropping 65% of their worth. The drop in share worth knocked him out of place because the world’s richest individual. But after a tough begin to this yr, they’ve rebounded properly in 2023, rising 70% year-to-date. Given Tuesday’s closing worth, the 11.5 million shares that Musk donated final yr are price $2.4 billion.
Musk is now the second richest individual on the planet, behind Bernard Arnault, the chairman of French luxurious items large LVMH, in keeping with an estimate by Forbes’ actual time billionaire tracker, with a web price of about $196.5 billion.
The typical US family has a web price of about $121,700, in keeping with the newest estimate from the Federal Reserve. So the $2.4 billion present worth of Musk’s donations final yr, in comparison with his present web price, is the equal of that typical household donating $1,500, or simply lower than $30 every week.
Source web site: www.cnn.com