Tesla CEO Elon Musk gave 11.5 million shares of his stake within the electrical automaker to an undisclosed charity final 12 months, shares value about $1.9 billion on the time they had been donated.
The donation would make him the second largest charitable donor in 2022, based on a rating of the Chronicle of Philanthropy, which was compiled earlier than Musk’s submitting. The Chronicle’s rating lists Invoice Gates as No. 1 with $5.1 billion in donations, adopted by Michael Bloomberg at $1.7 billion.
Musk’s web value on the finish of 2022 stood at $137 billion, based on Forbes’ actual time billionaire tracker, so the $1.9 billion represented about 1.4% of his web value 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 value an estimated $5.7 billion, on the finish of that 12 months. A 3-for-one inventory break up in Tesla
(TSLA) shares in August of final 12 months means the variety of shares he donated in 2021 was additionally 30% higher 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 global hunger. Beasley had mentioned a donation of that measurement may feed greater than 40 million folks throughout 43 nations which might be “on the point of famine.” Musk responded on Twitter at the moment if the World Meals Program “can describe on this Twitter thread precisely how $6B will remedy world starvation, I’ll promote Tesla inventory proper now and do it.”
Musk’s 2021 donation of Tesla shares got here quickly after that change, however there was by no means any affirmation as to the place the shares went to.
The latest donation of shares represented 1.6% of Musk’s stake within the firm on the finish of final 12 months when contemplating each shares he held outright and the vested choices he holds to buy further shares.
Because the finish of the 12 months he had one other 25.3 million choices vest when the corporate achieved certain financial goals, a grant the corporate had already mentioned 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 value.
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 value of Tesla inventory in 2021, with most going to to pay a large income tax bill he confronted for exercising options in 2021 earlier than they expired. Then in 2022 he sold $22.9 billion worth of Tesla shares as he raised money for his purchase of Twitter.
Tesla shares had their worst 12 months on file in 2022, losing 65% of their value. The drop in share value knocked him out of place because the world’s richest person. However after a tough begin to this 12 months, they’ve rebounded properly in 2023, rising 70% year-to-date. Given Tuesday’s closing value, the 11.5 million shares that Musk donated final 12 months are value $2.4 billion.
Musk is now the second richest individual on the planet, behind Bernard Arnault, the chairman of French luxurious items large LVMH, based on an estimate by Forbes’ real time billionaire tracker, with a web value of about $196.5 billion.
The standard US family has a web value of about $121,700, based on the newest estimate from the Federal Reserve. So the $2.4 billion present worth of Musk’s donations final 12 months, in comparison with his present web value, is the equal of that typical household donating $1,500, or simply lower than $30 every week.