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Tesla CEO Elon Musk gave away 11.5 million shares of his stake in the electric automaker to an undisclosed charity last year, with shares worth about $1.9 billion donated at the time.
The donation will make him the second largest charitable donor in 2022, according to the rankings of Chronicle of Philanthropy, which was compiled prior to Musk’s filing. Chronicle’s ranking lists Bill Gates as No. 1 with $5.1 billion in donations, followed by Michael Bloomberg with $1.7 billion.
According to Forbes’ Real Time Billionaire Tracker, Musk has a net worth of $137 billion at the end of 2022, so $1.9 billion is roughly 1.4% of his net worth at that time.
Musk’s 2022 donation is less than his estimated value Donation reported for 2021, when they reported that they had delivered 5 million Tesla
(TSLA) shares, worth an estimated $5.7 billion at the end of that year. Three-for-one stock split in Tesla
(TSLA) Shares in August of last year meant that the number of shares he donated in 2021 was also 30% higher than his 2022 donation on a split-adjusted basis.
Musk’s donation in 2021 was also to an undisclosed charity. They came at a time when he was challenged by UN Food Program Director David Beasley Donate $6 billion to fight global hunger, Beasley said a donation of that size could feed more than 40 million people in 43 countries that are “on the brink of famine.” Musk replied on twitter At the time if the World Food Program could “describe on this Twitter thread how $6B would solve world hunger, I would sell Tesla stock right now and do it.”
Musk’s donation of 2021 Tesla shares came shortly after that exchange, but it was never confirmed where the shares went.
The most recent donation of shares represents 1.6% of Musk’s stake in the company at the end of last year, when both the shares are considered and the vested options he has to buy additional shares.
He had another 25.3 million options vested through the end of the year when the company achieved certain financial goals, the company had already said that there is a possibility of grant. So Musk donated knowing that he would soon have the option to buy twice as many shares at a nominal price.
Musk has sold a large portion of his Tesla stake over the past 18 months for more than he has donated. First he sold $16.4 billion of Tesla stock in 2021, most of which was going to pay a big income tax bill he faced exercise options before expiring in 2021. Then in 2022 he $22.9 billion in sales They raised cash for him in the form of Tesla shares buy twitter,
Tesla shares had their worst year on record in 2022, lose 65% of their value, The drop in the share price exited him from the position richest man in the world, But after a poor start to the year, they have made a good comeback in 2023, gaining 70% year-on-year. Looking at Tuesday’s closing price, the 11.5 million shares that Musk donated last year are worth $2.4 billion.
Kasturi is now the second richest person on the planet behind Bernard ArnaultAccording to an estimate, the chairman of French luxury goods company LVMH Forbes Real Time Billionaire TrackerWith a net worth of around $196.5 billion.
According to the most recent estimates from the Federal Reserve, the net worth of the typical American household is approximately $121,700. So the present value of Musk’s donations of $2.4 billion last year, compared to his current net worth, is comparable to the typical family that donates $1,500, or less than $30 per week.