The Rise In Value For Electric Vehicle Company Tesla Inc Has Helped Ceo And Co
The rise in value for electric vehicle company Tesla Inc has helped CEO and co-founder Elon Musk become the richest person in the world. A new filing from the company reveals how many shares of Tesla, Musk currently owns and might own soon.
What Happened: On Friday, Tesla announced its intention to conduct a 3-for-1 stock split with shareholder approval.
The filing also announced that Board of Directors member and Oracle Corp founder Larry Ellison will be stepping down from the company. Ellison is the largest individual shareholder of Tesla after Musk with a 1.5% stake in the company .Ellison invested in Tesla in 2019 and later joined the Board of Directors in the same year.
Other large shareholders of Tesla shares as per the filing are Vanguard Group at 6% and BlackRock at 5.1%. Musks brother and Tesla Board of Directors member Kimbal Musk owns 683,490 shares of Tesla.
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Elon Musk Sells Nearly $7 Billion In Tesla Shares
Tesla CEO Elon Musk is at it again, selling shares of his electric vehicle company, per regulatory filings. Since Friday, the executive has sold 7.9 million shares, which totals about $6.9 billion. This is the first time Musk has sold shares in Tesla since .
Musk appears to be selling the shares to stock up on cash in case hes forced to go through on his $44 billion Twitter acquisition. The executive tweeted Tuesday evening that he was done selling for the moment.
In the event that Twitter forces this deal to close and some equity partners dont come through, it is important to avoid an emergency sale of Tesla stock,tweeted Musk.
Last month, because he believed the social media company to be misleading in its bot calculations. However, over the weekend, the executive waffled a bit, tweeting: If Twitter simply provides their method of sampling 100 accounts and how theyre confirmed to be real, the deal should proceed on original terms. However, if it turns out that their SEC filings are materially false, then it should not.
Musk also tweeted Tuesday evening that if the Twitter deal doesnt close, hell buy back his shares. Perhaps hell wait until Tesla issues its three-to-one stock split, which Tesla shareholders approved last week, so he can buy them back on the cheap.
Over the last 10 months, Musk has sold around $32 billion worth of stock in Tesla.
He Ahmed Saif Al Darmaki
Al Darmaki joined Teslas board in September 2008 in connection with an investment in the company before its IPO by Al Wahda Capital Investment, which is the investment arm of the Abu Dhabi Water and Electricity Authority. Al Darmaki was a planning and development director at the Authority at the time.
Al Darmaki resigned from Teslas board in 2012 and Al Wahda Capital Investment sold its 7% stake in Tesla when management changes resulted in it selling the Tesla shares, as they were a non-core holding. The sale in April 2012 saw Teslas share price drop by 7% in response, reflecting the impact of large Tesla shareholders on the stock price.
Al Darmaki still holds 7.3 million shares in Tesla, valued at $5.26bn and accounting for a 0.70% stake in the company.
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Elon Musks Private Equity
Musk founded and still controls several companies, but SpaceX is by far the largest. He owns about 44% of the space exploration technology company, which was valued at roughly $127 billion in a May 2022 funding round.
With a combined value of almost $200 billion, Musk’s Tesla and SpaceX stakes make up the vast majority of his net worth. He often describes himself as “cash poor” since most of his wealth is tied up in his businesses.
In addition to SpaceX, Musk also has majority ownership of several other privately owned start-ups he founded or co-founded. For example, he owns most of tunnel engineering company The Boring Company, neurotechnology start-up Neuralink, and artificial intelligence research operation OpenAI.
Elon Musks Publicly Traded Stock Investments
Besides Twitter, the only other major publicly traded stock holding Elon Musk owns is electric vehicle giant Tesla. Musk was an early investor, having led the Series A funding round, and he was one of the companys first employees. Musk accumulated a majority stake and took control of the company in 2008.
As of June 2022, Musk owned almost 163 million shares of Tesla stock, or about 17% of the company, which is currently worth approximately $142 billion. He also has a compensation package from Tesla that pays him exclusively in company stock, so his ownership could certainly increase over time. In fact, even after selling and giving away almost $22 billion of Tesla stock late in 2021, Musks stake in the leading EV manufacturer still increased because of stock options.
Thanks to a 10-year compensation package Teslas board approved in 2018, Musk’s only compensation is through performance-based tranches of stock options each year. He’s already reached the most aggressive goal , so at each of the vesting dates, Musk will receive options to buy 8.44 million additional shares at very low prices .
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Cost To Tesla Of The Options
Those options come at a cost to Tesla, although it’s a non-cash expense.
Stock-based compensation accounted for a $1.7 billion hit to Tesla’s bottom line last year. The company doesn’t break out how much of that was Musk’s or how much was stock for its other 70,750 employees.
The company makes stock widely available to its employees. Its filing said that “our compensation philosophy for all of our personnel reflects our startup origins, with an emphasis on equity-based awards.”
But the same filing says that the company does not match employees’ contributions to its 401 plans, in cash or in company stock.
When Musk was recently asked on Twitter about the lack of company match into 401 plans in the face of his own compensation package, he responded, “Everyone at Tesla receives stock. My comp is all stock/options, which I do not take off the table. That’s what you’re missing.”
Tesla said that Musk got so many options, so much sooner than expected, that it caused the spike in stock-based compensation expense. In 2019, stock-based compensation was about $900 million.
Musk received no options in 2019, but some of that $900 million was an expense Tesla booked because it believed that Musk would receive options in early 2020.
While the stock-based compensation doesn’t drain cash from Tesla’s coffers, it does change the company’s profit picture.
Billionaire Can Claim Half Of Stock Award After Teslas Stock Gains And Financial Performance Hit Targets
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, already one of the worlds richest people, can add another $32.4 billion worth of Tesla shares to his piggy bank.
The technology entrepreneur is now vested in stock options valued at that amount after the electric-car maker hit roughly half of the targets laid out by the board in his landmark 2018 compensation package, according to a securities disclosure filed late Friday. Mr. Musk is poised to receive approximately $10.8 billion more when Tesla hits other targets soon, the company said in separate securities filings this past week.
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Did Musk Really Need Any More Options
Unlike Musk, Bezos doesn’t receive stock options from Amazon, and he collected relatively modest salary of $81,840 in 2019, plus security services valued at $1.6 million a year. But rather than benefit from stock options or grants as do most CEOs, he benefits primarily from the rise of his Amazon shares.
Musk similarly owns 170 million Tesla shares outright, worth about $137.2 billion, in addition to those existing shares he has options to buy new ones. In fact, the nearly $123 billion gain in 2020 in the value of shares Musk already owns dwarfs the value of the additional options he received.
Musk, who bought a controlling stake in Tesla in 2004 when it was an upstart private company years from building its first car, takes no salary. Before his current lucrative compensation package he had an earlier version that paid him with options to buy 22.9 million split-adjusted Tesla shares for a price of $6.24 each. Those options are worth $18.3 billion today.
The options he received last year came from a second compensation package that was overwhelmingly approved by Tesla shareholders in 2018. It allows him to receive options to buy as many as 101 million split-adjusted shares of stock for $70 each. Those options can come in 12 separate, equally sized tranches.
Musk has not exercised any of his options. Executives typically exercise them when they are due to expire, or to free up cash. Musk has never sold Tesla shares.
Elon Musk How Did He Start His Business
Similarly, How did Elon Musk get his money to start his first business?
He designed and sold his own video game, Blastar, when he was 12 years old, for $500 to a PC magazine. This was Musks very first product.
Also, it is asked, Where did Elon Musk get his money from originally?
Musks first firm, Zip2, was an online local business directory that he launched in 1995. Zip2 was purchased by Compaq Computer Corp. for $307 million in 1999, and it became part of the AltaVista search engine. Musk made $22 million from the deal.
Secondly, Did Elon Musk come from money?
Is it true that Musk was born into a wealthy family? The billionaire tells it like it is. Elon Musk has earned a lot of attention in the media and on the internet over the years. According to some sources, the millionaire was born into an affluent family and that his father owned an emerald mine.
Also, How did Elon Musk get so rich?
At the age of 27, Elon Musk established PayPal. PayPal was purchased by Ebay for $1.4 billion in 2002, and Musk received a $100 million dividend, which he used to launch SpaceX. Musk joined Tesla as one of the companys original investors in 2004. Teslas first automobile, the Tesla Roadster, was released in 2005.
People also ask, How did Elon Musk get rich before Tesla?
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Is Elon Musk A Trillionaire
At this time, Musk isn’t yet a trillionaire. He’d have to earn or otherwise garner another whopping $724 billion to achieve that capitalist benchmark. That said, some expertsbelieve that for Musk to actually achieve trillionaire status in his lifetime, he’d be most likely to do so through his work not just with Tesla, but also with SpaceX, and that the work would have to expand beyond just the SpaceX program’s Starlink satellite Internet service.
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Elon Musks Stake In The Company
Elon Musk’s Tesla has endured a rough couple of months in China. Now he’s working overtime to win Beijing back.
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Over 193 million Tesla shares belong to Elon Musk, bringing his net worth to $105 billion. Teslas board of directors also approved a compensation package for Musk, which would potentially award several million dollars more.
However, this monetary increase is dependent on Teslas success. Under the conditions of the package, Teslas stock would have to increase by $50 billion every 10 months.
It might seem like a lofty goal, but Tesla has proven itself to be an incredibly lucrative business venture. Its currently worth $700 billion on the stock market, with shares costing around $600 apiece. Its vehicles are also popular, with the Tesla Model 3 currently leading EV sales in the United States.
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Who Owns Tesla Stock
Tesla has a total of 1.04 billion shares outstanding, according to data from Nasdaq. But who are the stakeholders of Tesla?
Institutional investors accounted for the largest block of shares, at around 431 million or 42% as of 18 July, according to Nasdaq and Wall Street Zen.
Retail investors accounted for 39.8% of the ownership in the stock, totalling 411 million shares, and company executives held 18.68% of the stock, or 193.5 million shares.
Tesla differs from its peers in the automotive industry, in that company insiders have a substantial holding in the stock. US automotive manufacturer Ford has an insider shareholding of just 2% in its stock, while executives at General Motors hold 12.23% of their companys stock.
Who owns the most shares of Tesla? Elon Musk is Teslas largest individual shareholder. He owns 163.58 million shares, representing 15.66% of the stock.
On 9 August 2022, regulatory filings revealed Musk had sold $6.9bn of TSLA. The Tesla and SpaceX CEO admitted he needed the funds to prevent an emergency sale of TSLA stock if he loses the impending court battle with Twitter over the latters termination of his bid to buy the social media platform.
Yes. In the event that Twitter forces this deal to close *and* some equity partners dont come through, it is important to avoid an emergency sale of Tesla stock.
At the current price of $850 a share, Musks stake in the company is valued at $139.04bn. Other Tesla executives hold 2.89% of the stock.
Hints At Elon Musk’s Own Social Media Company
Musk sold about 7.92 million shares between August 5 and August 9 and now owns just under 15 per cent of the automaker, according to Reuters calculations. The latest sales bring total Tesla stock sales by Musk to about $32 billion in less than one year.
Musk also teased on Tuesday that he could start his own social media platform. When asked by a Twitter user if he had thought about creating his own platform if the deal did not close, he replied: “X.com”
He also tweeted that Tesla would begin shipping the longer-range and higher-cost version of its battery-powered Semi commercial truck this year.
The 500-mile range truck is expected to cost $180,000 , although it would qualify for a tax break of up to $40,000 under a US subsidy program that was approved by the US Senate.
Tesla announced plans for the Semi in 2017 but its launch and volume deliveries to companies including PepsiCo Inc have been delayed by issues around the availability of the new 4680 battery cells.
Tesla shares have risen nearly 15 per cent since the automaker reported better-than-expected earnings on July 20.
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Elon Musks Cryptocurrency Investments
Although we don’t know the exact amounts he owns, we do know that Musk is a cryptocurrency investor — both through the companies he controls and personally. He has been quite outspoken about some of his favorite digital assets, particularly Dogecoin .
Musk also has revealed that he owns Bitcoin and Ethereum , although he has said the Bitcoin he owns is worth much more than the Ethereum or Doge that he owns. Tesla and SpaceX both own significant amounts of Bitcoin, too. Although we know Tesla owns about 42,000 Bitcoins , we don’t know how much of any cryptocurrencies Musk personally owns.
What Companies Does Elon Own
What are the firms in which Elon Musk has a stake? Tesla. Tesla is perhaps Musks most well-known company. SpaceX. SpaceX is an aerospace company founded by Musk in 2002. Neuralink. In 2016, Musk co-founded the neurological research firm. The Boring Company is a company that specializes in boring. Twitter
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Elon Musk Sells $69 Billion Of Tesla Stock To Finance His Twitter Deal If It Is Forced Through
Tesla CEO Elon Musk sold $6.9 billion worth of shares in the electric vehicle maker, saying the funds could be used to finance a potential Twitter deal if he loses a legal battle with the social media platform.
“In the event that Twitter forces this deal to close and some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” he said in a tweet late on Tuesday.
Musk in early July tore up his April 25 agreement to buy Twitter for $44 billion . Twitter has sued Musk to force him to complete the transaction, dismissing his claim that he was misled about the number of spam accounts on the social media platform as buyer’s remorse in the wake of a plunge in technology stocks.
The two sides head to court on October 17.
Elon Musk Selling Tesla Stocks
After Tesla went public in 2010, Elon Musk often said that he would be the last one to sell Tesla stocks.
The CEO periodically had to do it to cover his taxes after receiving large stock compensations, which is something he did warn would happen amid his promise not to sell Tesla.
However, paying taxes turned out not to be the only reason he would sell Tesla stocks.
In late 2021, Musk said he would sell 10% of his stake in Tesla if a Twitter poll agreed, which it unsurprisingly did.
The CEO framed the idea as pressure from the media and politicians about the rich not paying taxes on unrealized gains.
However, Musk wasnt as vocal about the fact that he was facing a giant tax bill regardless of his sale of shares, due to a large number of stock options he needs to exercise over the next year. More importantly, the CEO did end up selling more Tesla shares than he needed to cover his tax burden from the stock options being exercised.
In December 2021, Musk announced that he was done selling Tesla.
A few months later, we learned that he used some of that extra money from selling those shares to invest roughly $3 billion in Twitter.
Soon after, Musk announced a deal to buy Twitter and take it private. The CEO again broke his promise to be the last one to sell Tesla shares and sold about $8 billion worth to cover some of the equity needed in the deal.
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