Background Information
Elon Reeve Musk is a South African-born American business magnate, inventor, engineer and investor. Musk is the founder, CEO, CTO and chief designer of SpaceX; co-founder, CEO and product architect of Tesla, Inc.; founder of The Boring Company; co-founder of Neuralink; and co-founder and initial co-chairman of OpenAI. As of August 2020, his net worth was estimated at $78.9 billion, making him the 21st-richest person on earth.
Musk has expressed admiration for Google X founder and Alphabet’s former CEO Larry Page and attributes his business acumen to studying Peter Thiel’s book Zero to One. Musk regularly posts on Twitter about his own stocks and his companies, often making headlines for his tweets. Although a savvy entrepreneur and investor, Musk’s pay is multi-faceted and complex. In 2018, Forbes estimated Musk’s total compensation package to be valued at $2.3 billion, making him the highest-paid executive at any public company.
Yesterday’s Earnings
It is unclear how much Elon Musk made yesterday because his earnings are multi-faceted and not simply determined by one thing. For example, Tesla’s stock price increases or decreases throughout the day, and Musk’s performance-based compensation package is based on the company’s stock price. Imagine that the stock price rose 3% yesterday. That would have meant a $97 million gain for Musk, since he is the largest stakeholder in the company.
Musk’s billionaire status is often attributed to the astronomical gains from Tesla’s IPO in 2010. But he also made money from SpaceX due to its highly successful satellite launches. For example, in May 2020, Tesla and SpaceX signed a contract with NASA for a multi-billion project to build a robotic cargo vehicle. This could have added additional earnings to Musk’s income.
Musk is also a savvy investor and has invested in several companies, such as Neuralink and The Boring Company. The investments that these companies are making could have also contributed to his earnings yesterday.
Perspectives from Experts
According to experts, Musk has earned an impressive amount of money due to his investments in Tesla as well as other companies. His net worth is estimated to be a staggering $78.9 billion, making him the 21st-richest person on earth. This is an indication of how successful he has been over the years.
Investment expert Paul Mampilly argued that Musk’s success has been due to the fact that he has been continuously investing in multiple companies at once, allowing him to capitalize on a diverse range of markets. This, in turn, makes it easier for him to make money, regardless of whether the markets are in an upswing or a downswing.
Before Tesla’s IPO in 2010, few people predicted that the company would become one of the most valuable in the world. But Musk saw potential in the company and invested all he had into it. This is why he has been able to make such an impressive amount of money as a result.
Insights and Analysis
It is almost impossible to accurately determine how much money Musk made yesterday due to his complex income structure. However, it is safe to assume that it was a significant amount. This is because his income is not solely based on Tesla’s stock price, but also on investments in various other companies such as SpaceX, The Boring Company and Neuralink.
Moreover, Musk is a savvy investor and is able to capitalize on a diverse range of markets, regardless of whether they are in an upswing or a downswing. This is why he has been able to make an impressive amount of money throughout his career as a business magnate and investor.
The amount of money that Musk has made yesterday is certainly an impressive accomplishment, and a testament to his business acumen and shrewdness as an investor.
Tesla IPO
Before Tesla’s IPO in 2010, few people predicted the company would become one of the most valuable in the world. Elon Musk showed his faith in the venture’s potential and invested all he could into it. Tesla Motors went public on June 29, 2010 at $17 per share and has grown almost 18,000 percent since then. Tesla was the best performing stock on the S&P 500 in 2020, going from $88 in late 2019 to $741 today.
Tesla is now worth more than its traditional rivals, surpassing the combined value of the world’s top seven automakers at its peak. Tesla’s market capitalization reached an astonishing $700 billion in January 2021, making it the world’s most valuable automotive company.
According to Tesla’s financial statements, the company is worth more than Toyota, Nissan, BMW, Hyundai, Mercedes-Benz, Volkswagen, and Ford combined. It’s worth noting that Tesla has never made a profit in spite of its growing valuation. Nonetheless, Tesla’s unprecedented success is largely attributed to Musk’s efforts in investing in the company.
Musk’s Income Structure
Musk is the largest shareholder in Tesla and his income is largely based on the company’s stock price increases. He is also the founder, CEO, and chairman of SpaceX, whose successful launches creates additional income for Musk. With his complex income structure, it is difficult to simply quantify how much money he has made yesterday.
Musk’s annual salary from Tesla is also impressive, being roughly $56,350 as of 2018. But this is nothing compared to his total compensation package, which can go up to around $2.3 billion per year depending on performance-related goals. Tesla has set performance targets for Musk to hit, with each target compounded 10 times. Thus, Musk’s benefits can go up to 10 times the target value if he meets the goals.
In addition to his salary, Musk also makes money through being an investor. He invests in diverse companies, such as The Boring Company, SolarCity, and OpenAI. The returns he receives on these investments could have also contributed to his income yesterday.
Musk’s Charitable Giving
Musk has become one of the world’s wealthiest entrepreneurs, but his charity isn’t limited to his wealth. He has pledged to give away the majority of his wealth to charity and been quite vocal about it on social media. Musk is known to support causes such as carbon neutrality, renewable energy, and responsible development.
Musk is a vocal advocate for science and innovation, having pledged to donate $1 billion to charities and ecological causes. He has also made contributions to various organizations and causes, such as Save the Children, XPRIZE, and SolarCity. Musk is also a member of the Giving Pledge, an organization that encourages wealthy individuals to dedicate most of their wealth to philanthropy.
Musk is actively involved in several initiatives aimed at making an impact on the world. For example, he recently started a #DontPanic challenge on Twitter to raise money for COVID-19 relief. The challenge saw several high-profile celebrities and business magnates pledging millions of dollars to medical research and food security.
Musk’s Social Media Presence
Musk is an avid user of Twitter, where he regularly posts about his companies, stocks, and other topics. His tweets often make headlines for their provocative nature and it is clear that his social media presence has had a significant impact on his wealth. Musk’s Twitter posts have influenced investor decisions and helped drive the prices of his companies’ stocks, leading to increased earnings.
Musk has a huge following on social media and his tweets are often shared by millions of people. This has led to a massive influx of investments and capital for Musk’s companies. By increasing his companies’ presence on social media, he is able to make more money than if he had remained off the platform.
It is clear that Musk’s social media presence has proven to be a powerful tool in his journey to becoming a billionaire. His account serves to showcase his thoughts and views on a variety of topics, but also generates tremendous amounts of income for his businesses.
