Elon Musk is known to have some of the highest paying positions in the modern world, and he even makes more money than many countries do. But just how much money does he make per second? To answer this, it is important to understand their sources of income, their investments and other factors which contribute to this eye-watering figure.
Let’s take a look at what contributes to Elon Musk’s wealth. Musk is a founder of multiple companies, including Tesla Inc and SpaceX. He also has investments in tech unicorns such as Uber and Dell, as well as diversifying his portfolio into alternative investments like property and art. In addition, Musk holds multiple board positions with the companies that he has founded and invested in, plus the compensation packages for these roles are very generous.
Elon Musk reportedly earns an estimated $149,814 per second, according to an analysis by Paid It’s data analyst. Musk’s total salary from Tesla in 2019 was $2.3 billion, which calculates to an hourly rate of $35,194- a year rate of $29.2 million. This figure is more than what many of the top executives at major tech companies make in a year, such as Mark Zuckerberg ($22.6 million) and Jeff Bezos ($1.68 million).
Investment Strategy
Musk’s wealth also comes from his decision to reinvest nearly all of his payouts into his companies, where he retains company and board positions that are quite rewarding. Musk owns approximately 20.8% of Tesla, which has a market value of approximately $588 billion. Therefore, Elon Musk holds around $121.7 billion in Tesla shares.
He also has a massive stake in SpaceX which is estimated to be equal to or slightly higher than his stake in Tesla. SpaceX is estimated to be worth $46 billion, so Musk’s shares could be worth close to $10 billion at least. Finally, Musk has been a long-time investor in PayPal when it was first established, and sold his stake for $165 million in 2002.
By calculating how much money a billionaire like Elon Musk makes per second, it is easy to understand his strategy for investment and how he has amassed such wealth. For instance, despite the fact that Musk made as much as $2.3 billion from Tesla in 2019, he reinvested all his profits in Tesla, greatly increasing his stake substantially over time. This shows us that even when you have billions, reinvesting it is the path to even greater wealth.
Controversies
While the contributions of Elon Musk have been seen as revolutionary, some experts have voiced concerns about his income. Firstly, Tesla’s stock price has been rising exponentially to heights that some experts do not think are sustainable. This has left some to question whether Musk has been the target of market manipulation. Another point of contention is that the compensation package Musk receives from Tesla is far too generous, and some have argued Elon Musk should be devoting his time to running the company better instead of making personal gains.
Furthermore, some experts have voiced their distaste for the way in which Musk has conducted himself on social media. Not only has his conduct raised eyebrows in the legal world due to potential violation of some securities laws, but it has also earned him criticisms from inside his own company. Tesla board of directors have received complaints from employees that they believe Musk is trying to undermine them and take control of the company.
Outside Investments
In addition to his income from Tesla, SpaceX, and other investments, Elon Musk has obtained wealth from outside investments. He has recently invested in some innovative projects, including The Boring Company and Neuralink. These two companies are now estimated to be worth billions, giving Musk even more avenues for earning income. In addition, Musk has used his influence to attract investors from all across the globe, helping to quickly grow these companies.
Musk has also invested in a few startups, such as Vicarious FPC and Encinal Resources, to help bring about new products. Finally, Musk has made some moves in the venture capital space as well, forming a firm called OpenAI with other prominent billionaires such as Peter Thiel, Mark Zuckerberg and Jan Koum.
Tax Implications
Due to the large income he earns, Elon Musk is subject to much higher taxes than the average taxpayer. While the exact figure is uncertain, Musk is said to pay around $65 million in taxes each year, which is certainly a hefty sum. The impact of such large amounts of personal taxes have not been seen by many other billionaires, making Musk’s income a unique case.
Moreover, it is also important to note that Musk does not just pay taxes on his income but also on any investments he holds, such as property and art. All of these taxes add up over time, and it is safe to assume that a significant portion of Musk’s income goes towards taxes each year.
Analysis and Conclusion
It is clear from looking at the figures and data that Elon Musk makes an incredible amount of money per second. This money is obtained from a variety of sources, from sources outside of Musk, such as investments and venture capital. His decision to reinvest his payouts into his companies has caused his wealth to grow exponentially. However, Musk is also subject to high taxes, taking a significant amount of his money each year.
Musk has also faced criticism for some of his decisions, with many people questioning his conduct and market manipulation. However, aside from these allegations, it is clear that his strategies have allowed him to make staggering amounts of money each second.
