- Elon Musk has a $19.2 billion internet price.
- As CEO of Tesla, SpaceX, and The Boring Firm, Musk is an influential tech entrepreneur reworking the transportation business.
- Musk grew up in South Africa and taught himself how one can code. At 12 years previous, Musk bought the supply code for his first online game for $500.
- He later grew to become a majority shareholder of PayPal and made $180 million when Ebay purchased the corporate in 2002.
- Musk spends cash on properties, vehicles, and charities, however he additionally invests a big quantity again into his firms.
- Go to Enterprise Insider’s homepage for extra tales.
Following is a transcript of the video.
Elon Musk: What we’re over there, that is 1 / 4 part of the Falcon 9.
Narrator: From SpaceX to Tesla, Elon Musk is the face of some high-profile firms, and his present internet price is round $20 billion. The place did all this cash come from, and the place does all of it go? This is how Elon Musk makes and spends his billions.
Musk grew up in South Africa and taught himself how one can code. At simply 12 years previous, Musk bought the supply code for his first online game for $500. Then, at age 24, Elon and his brother, Kimbal, based Zip2 with $28,000 of their father’s cash. Zip2 supplied a searchable enterprise listing, virtually like a web based model of the Yellow Pages with maps. 4 years later, the brothers bought Zip2 for $307 million. Musk used his $22 million share to cofound the online-banking service X.com. By way of merger, X.com ended up changing into PayPal, with Musk as a majority shareholder. When eBay bought PayPal in 2002 for $1.5 billion, Musk made $180 million from the sale.
Musk and different PayPal executives like Peter Thiel and Reid Hoffman have turn into referred to as the “PayPal Mafia.” They took their beneficial properties from the PayPal sale and put them into varied startups and funds. Their investments and creations embrace YouTube, LinkedIn, Uber, and numerous others which have turn into main gamers in Silicon Valley in the present day.
Following the PayPal sale, Musk based space-exploration firm SpaceX. SpaceX’s self-described mission is “to allow people to turn into a spacefaring civilization and a multi-planet species by constructing a self-sustaining metropolis on Mars.” The privately owned firm is valued at $33.three billion, in accordance with CNBC. Musk himself is the biggest particular person shareholder of SpaceX, with a 54% stake.
Whereas SpaceX shoots for the celebrities, Musk is most well-known for a corporation that is at the very least a little bit bit extra down-to-earth. Automaker and vitality firm Tesla was based in 2003. It went public in 2010 and beat expectations with a $2.2 billion market cap. Simply two years later, Musk made it onto Forbes’ richest record for the primary time, with an estimated internet price of $2 billion.
Though Tesla helped construct Musk’s fortune, the way forward for the corporate stays unclear. In 2018, Musk needed to pay a $20 million advantageous and needed to step down as chairman for 3 years after triggering an SEC investigation when he tweeted about taking Tesla non-public. Nonetheless, the corporate’s present valuation is $32.eight billion. He technically has a wage of $56,000, for authorized causes, however does not money the paychecks. As an alternative, all of his compensation comes by means of awards primarily based on the corporate’s success.
And if outer house and our highways weren’t sufficient, one other Musk enterprise is trying underground. Musk has additionally based The Boring Firm, an infrastructure and tunnel-construction firm that hopes to construct underground tunnels with an all-electric transportation system in-built. Musk was impressed to start out the corporate after experiencing the notoriously unhealthy visitors of LA. In response to Musk, The Boring Firm’s first industrial tunnel may very well be completed in Las Vegas by the top of 2019. This and different high-profile contracts, just like the one with Chicago’s O’Hare Airport, has estimates for the corporate’s worth as excessive as $16 billion. With all of those formidable tasks, Musk has amassed an unimaginable fortune.
This is how he is recognized to spend his billions. Musk at the moment owns a $70 million real-estate portfolio. His properties embrace a number of Bel Air estates. His first buy, a $17 million mansion, features a two-story library, a house theater, a fitness center, and a thousand-bottle wine cellar.
And naturally, the Tesla cofounder has an affinity for vehicles. His automobile assortment features a $920,000 Lotus Esprit submarine automobile utilized in a “James Bond” film, a Ford Mannequin T, and a Jaguar E-Sort Sequence 1 Roadster. As you may think about, Musk is a little bit of a workaholic, so he isn’t spending cash on holidays. In a 2015 interview, Musk claimed to solely have taken off two separate weeks since founding SpaceX in 2002. As an alternative, a variety of Musk’s cash goes proper again into his firms.
The New York Occasions reported that 90% of the $112 million that The Boring Firm raised got here from Elon Musk. And in 2018, Musk purchased greater than $35 million price of shares in Tesla.
He has additionally signed the Giving Pledge, began by Warren Buffett and Invoice and Melinda Gates, vowing to donate nearly all of his wealth throughout his lifetime. Musk has made a lot of donations to vital causes he cares about, together with $10 million to the Way forward for Life Institute for regulating synthetic intelligence.
Elon Musk has turn into considerably of a controversial determine, however his journey to changing into a rocket-scientist billionaire stays spectacular. And if humanity does find yourself dwelling on Mars, it may very well be because of Musk.
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