Monday, January 25, 2021
Home Business Elon Musk's net worth quintupled in 2020 during the pandemic. We broke...

Elon Musk’s net worth quintupled in 2020 during the pandemic. We broke his complicated $160 billion wealth down into 2 simple charts.


#Financially speaking, nobody had a better year than #Elon #Musk. #Here’s how the billionaire’s coffers fared in 2020, and why.

  • #Perhaps nobody had a better year, financially speaking, than #Tesla and #SpaceX CEO #Elon #Musk.
  • The billionaire saw his wealth more than quintuple during a pandemic that’s left hundreds of thousands dead and many more out of work.
  • #Yet the magnate takes a very small salary, instead relying on massive stakes in his companies to accumulate wealth.
  • #With #Tesla’s stunning performance this year, it’s no surprise that those equity values have also swelled.
  • #Visit #Business #Insider’s homepage for more stories.

#Financially, there is likely no one in the world who has had a more successful 2020 than #Tesla CEO #Elon #Musk.

#Musk – who was already a multi-billionaire going into 2020 – has seen his net worth more than quintuple over the course of the year. The #Tesla CEO’s net worth grew by $129 billion, as of #Monday – an increase of 469.9%, according to #Bloomberg’s #Billionaire #Index.

- Advertisement -

#Here is how #Musk got so much richer in 2020:

#Business #Insider charted #Musk’s net worth on the 1st and the 15th of every month, through #December 1. #We monitored bimonthly dates in an effort to avoid exaggerating the extreme peaks and drops in estimations of #Musk’s wealth, as many billionaires gain or lose billions of dollars in a single day thanks to fluctuations in stock prices. #This is particularly salient for #Musk, whose coffers swell and shrink virtually in-step with #Tesla’s equity value, while he takes the minimum legally allowed salary from #Tesla.

#Tesla’s stock price, the biggest source of 2020 gains for #Musk, soared to new heights this year. #Already the world’s most valuable automaker, #Tesla was worth nearly $645 billion with only one trading day left in the year. #That’s a 689% increase since #January 1, and a massive tailwind for #Musk, who, with an 18% stake, is easily its largest shareholder.

#But his small salary, at least on paper, left #Musk, in his own words, “cash poor.” #Like plenty of other well-to-do C-suiters, he still relies on mortgages and credit for daily life. “#Some people think I have a lot of cash,” #Musk told a major investor, #Cathie #Wood, on a podcast last year. “I actually don’t.”

#Yet despite the small salary, #Musk was still the world’s highest-paid executive last year thanks to a highly complex compensation package that awards him tranches of stock options when #Tesla achieves increasingly difficult stock, revenue, and profitability performance metrics.

#Tesla did not respond to a request for comment about #Musk’s compensation. #Regulatory filings show shareholders overwhelmingly approved the performance awards in 2018, and, as of #August, #Musk had unlocked two of the total tranches

- Advertisement -

#Much of that equity in #Tesla – and his stake in #SpaceX, a private company – is also pledged as collateral for mortgages and other loans. #That leaves his final stakes in the respective companies valued at slightly less than their face value. #This discounting is used by #Forbes’ famous wealth estimates as well as #Bloomberg’s billionaires index.

#Bloomberg pegged #Musk’s wealth at around $158 billion as of #December 15, with about $110 billion, or roughly 70% of that sum, from #Tesla stock and options, with another $18.7 billion from equity in #SpaceX.  A final $7 billion in #Bloomberg’s calculations is tied up in cash, homes, cars, and other assets.

#Here’s what that looks like broken down by percentages:

#In #May 2020 – in the middle of a pandemic that caused headaches for #Tesla’s factories in #California and #China – #Musk said he planned to sell “almost all” of his physical possessions, including the multiple homes he owned at the time.

#And by the end of the year, #Musk made good on earlier threats – at least in part -by moving himself and his charitable organization from #California to #Texas.

- Advertisement -

“#Tesla and #SpaceX obviously have mass operations in #California,” #Musk said at a conference hosted by The #Wall #Street #Journal in early #December. “#In fact, it’s worth noting that #Tesla is the last car company still manufacturing cars in #California. #Space X is the last aerospace company still doing significant manufacturing in #California. There used to be over a dozen car plants in #California, and #California used to be the center of aerospace manufacturing. #My companies are the last two left.”

“#For myself, yes, I have moved to #Texas,” #Musk continued. “#We’ve got the #Starship development here in #South #Texas where I am right now … and then we’ve got big factory developments just outside of #Austin for #Giga #Texas.”

#Beyond the symbolism following a spat with local health regulators, the move could save #Musk a pretty penny on income taxes.

#It’s not clear where, exactly, in #Texas #Musk may be calling home. #In moving to #Texas, he’ll be joining a growing cohort of former #Californians and #Silicon #Valley expats in a long-running exodus to the #Lone #Star #State that’s only been intensified by pandemic-induced work-from-home orders.

#What’s almost certain to continue, though, is #Tesla and #SpaceX’s growth. The automaker is on track to meet its goal of selling 500,000 units this year, analysts say, with increased demand in #China and the US helping spur the continued trend. #SpaceX, meanwhile, is in discussions about another round of funding that could raise its valuation as high as $92 billion, sources told #Business #Insider in #December.

#Musk has also flirted with the idea of combining his various ventures – from brain-engineering #Neuralink to tunnel-building #Boring #Company – under one roof.

#And as for #Tesla’s value in 2021? #Analysts are split. #Some analysts – like JPMorgan’s #Ryan #Brinkman – say it’s just a fraction of current prices, while bulls – including #Wedbush’s #Dan #Ives – believe there’s even more room to run.





[ source link ]
https://www.businessinsider.fr/us/elon-musk-net-worth-quintupled-2020-explained-charts-tesla-spacex-2020-12

##Elon ##Musks #net #worth #quintupled #pandemic #broke #complicated #billion #wealth #simple #charts

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments