Elon Musk may have to pay $44 billion to buy Twitter, but he’s still the richest person in the world.
A infamous workaholic, Musk does not spend his cash on lavish holidays or costly hobbies.
Here’s how Musk makes and spends his $228 billion fortune.
Decades earlier than changing into a father of 9 and amassing an $228 billion fortune, Musk taught himself to code as a baby rising up in South Africa. By the time he was 12, he offered the supply code for his first online game for $500.
Just earlier than his 18th birthday, Musk moved to Canada and labored a sequence of exhausting labor jobs, together with shoveling grain, slicing logs, and finally cleansing out the boiler room in a lumber mill for $18 an hour — a formidable wage in 1989.
After he arrived for his freshman 12 months at Queens University in 1990, Musk rapidly picked up a facet hustle promoting laptop components and full PCs to different college students. “I could build something to suit their needs like a tricked-out gaming machine or a simple word processor that cost less than what they could get in a store,” Musk mentioned.
To cowl the remainder of his tuition, Musk and a buddy would flip their home right into a speakeasy on the weekends, charging $5 at the door. “I was paying my own way through college and could make an entire month’s rent in one night,” Musk mentioned.
Musk turned his consideration to his new area exploration firm, SpaceX, after leaving PayPal. A couple of years later he cofounded electric-car maker, Tesla, and then SolarCity, a solar energy techniques supplier. The success of those firms finally launched him into the billion-dollar membership — but not earlier than he went broke.
In late 2008, Musk divorced his first spouse and it took a toll on his funds. A 12 months later, Musk mentioned he “ran out of cash” and had been dwelling off loans from buddies whereas making an attempt to hold his firms afloat.
Nearly a decade later, Musk has amassed an $228 billion fortune — but it is not very liquid. Remarkably, Musk made his billions with out ever taking a paycheck from Tesla, as a result of the CEO refuses his minimal wage yearly. By 2020, Tesla lower his paycheck down to zero.
But Musk has mentioned himself that he’s cash-poor. “Some people think I have a lot of cash,” Musk advised investor Cathie Wood on a podcast final 12 months. “I actually don’t.” Like plenty of different high-powered executives, Musk depends on mortgages and credit score day-to-day.
Over the years, the CEO has bought greater than $100 million in residential property in California. He has since offloaded a lot of his actual property after vowing to promote all of it and “own no house” final 12 months.
As the chief of one in every of the preeminent auto-makers, it is no shock Musk has an affinity for automobiles. Back in 2013, he paid $920,000 at an public sale for the Lotus Esprit submarine automobile used in a James Bond film.
In addition to driving Teslas, Musk has owned just a few gas-powered automobiles together with a Ford Model T, a Jaguar E-Type Series 1 Roadster, a McLaren F1 (which he later totaled), an Audi Q7, a Hamann BMW M5, and a Porsche 911.
Despite having funds to spare, Musk is not a fan of lavish holidays — or any holidays for that matter. In 2015, he mentioned he’d solely taken two weeks off since founding SpaceX about 12 years earlier.
Musk has 5 youngsters with his first spouse, Justine Musk. In a 2014 tweet, Musk mentioned he takes the children on an annual tenting journey. “I’m a pretty good dad,” he mentioned. “I have the kids for slightly more than half the week and spend a fair bit of time with them. I also take them with me when I go out of town.”
At the finish of the day, the multibillionaire says he enjoys cheap hobbies like listening to music, enjoying video video games, and studying books. “Hang out with kids, see friends, normal stuff,” he mentioned. “Sometimes go crazy on Twitter. But usually it’s work more.”
In August 2018, Musk advised The New York Times that he had taken to working 120 hours every week. “There were times when I didn’t leave the factory for three or four days — days when I didn’t go outside,” he advised The Times. “This has really come at the expense of seeing my kids. And seeing friends.”
Musk mentioned on an earnings name in 2017 that he does not have a desk at the Tesla manufacturing facility: “I always move my desk to wherever — I don’t really have a desk actually — I move myself to wherever the biggest problem is in Tesla. I really believe that one should lead from the front lines, and that’s why I’m here.”
Not solely does Musk spend a ton of time at Tesla, he additionally spends plenty of his cash on the firm. In the first six months of 2018, he purchased greater than $35 million price of shares in Tesla.
SpaceX has raised billions to develop, construct, and launch Starlink — an effort to cowl Earth in ultra-fast broadband web — and construct the prototype of Starship, a gargantuan reusable area automobile designed to deliver folks to Mars. The firm was valued at $100 billion as of October 2021.
According to The New York Times, The Boring Company raised over $112 million in 2018 — and greater than 90% of it got here from Musk. In 2019, the firm raised outdoors funding for the first time to the tune of round $120 million.
In 2012, Musk signed The Giving Pledge, vowing to donate the majority of his wealth throughout his lifetime. Though he’s already in the enterprise of bettering our surroundings and the future throughout his day job, Musk has made sizable donations to causes he cares about, together with a $10 million reward to the Future of Life Institute to regulate synthetic intelligence.
Musk discovered himself in authorized bother with the SEC in 2018 after he tweeted that he had obtained the funding to take Tesla personal, which moved the firm’s inventory value. Musk reached a settlement with the SEC in April 2019 in which he and Tesla each agreed to pay a $20 million penalty.
Musk’s Twitter habits as soon as once more bought him into authorized bother in 2019 after he known as the British cave diver who helped rescue a Thai soccer group a “pedo guy”; the diver sued Musk, claiming defamation, but a jury dominated in Musk’s favor.
Musk’s web price soared in 2020 amid the pandemic, growing by 197% between March and August, in accordance to an evaluation by the Institute for Policy Studies. By December 2020, Musk had turn into the world’s second-richest person behind Amazon founder Jeff Bezos.
Only just a few months later, Musk turned the world’s richest person and his web price has solely grown since: Just final month, Musk’s wealth elevated by $36 billion in a single day, the largest acquire ever recorded by Bloomberg’s Billionaires Index.
But after shares of Tesla plunged by 16%, Musk misplaced $50 billion in simply two days. Tesla’s share value dipped after a string of headlines, together with a tweet from Musk asking if he ought to promote 10% of his Tesla inventory. Still, Musk stays $82 billion richer than Bezos.
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