Elon Musk just made $8 billion in one day. Here’s how the CEO makes and spends his $84.8 billion fortune.

August 19, 2020

Read Time : 4 Minutes

Grimes revealed she was pregnant in a cryptic social media post in January, but until now, neither she nor Musk had confirmed they were having the baby together.

<p class= — Grimes revealed she was pregnant in a cryptic social media post in January, but until now, neither she nor Musk had confirmed they were having the baby together.

Reuters

The coronavirus pandemic has been an economic disaster for most Americans, but not for Elon Musk.

The Telsa CEO has made more than $48 billion between March 18 and August 13, an increase of more than 197%, according to a new analysis by left-leaning think tank the Institute for Policy Studies released Monday. That’s significantly more than any other billionaire made during the same time period.

Remarkably, Musk made his billions without ever taking a paycheck from Tesla. The CEO refuses his $56,000 minimum salary every year. In January 2018, Tesla announced it would pay Musk nothing for the next 10 years — no salary, bonuses, or stock — until the company reaches a $100 billion market cap. If and when that happens, Musk could potentially overtake Amazon CEO Jeff Bezos as the richest person in the world.

Keep reading to find out what we know about how Musk amassed his fortune and how he spends it.

Decades before becoming a father of six and amassing an $84.8 billion fortune, Musk taught himself to code as a child growing up in South Africa. By the time he was 12, he sold the source code for his first video game for $500.

SpaceX and Tesla CEO Elon Musk works at his desk in 2008.

<p class= — SpaceX and Tesla CEO Elon Musk works at his desk in 2008.

OnInnovation/Flickr

Source: MONEY

Just before his 18th birthday, Musk moved to Canada and worked a series of hard labor jobs, including shoveling grain, cutting logs, and eventually cleaning out the boiler room in a lumber mill for $18 an hour — an impressive wage in 1989.

<p class= — OnInnovation/Flickr

Sources: MONEY, Esquire – Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future

Musk got a pay cut to $14 an hour when he started a summer internship alongside his brother, Kimbal, at the Bank of Nova Scotia after cold-calling — and impressing — a top executive there.

Elon Musk, founder, CEO and lead designer at SpaceX and co-founder of Tesla, speaks at the International Space Station Research and Development Conference in Washington, U.S., July 19, 2017.

<p class= — Elon Musk, founder, CEO and lead designer at SpaceX and co-founder of Tesla, speaks at the International Space Station Research and Development Conference in Washington, U.S., July 19, 2017.

Aaron P. Bernstein/Reuters

Sources: MONEY, Esquire – Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future

After he arrived for his freshman year at Queens University in 1990, Musk quickly picked up a side hustle selling computer parts and full PCs to other 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 said.

Elon Musk.

<p class= — Elon Musk.

Larry Busacca/Getty Images for The New York Times

Sources: MONEY, Esquire – Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future

Within two years, Musk transferred to the University of Pennsylvania on a partial scholarship.

<p class= — f11photo/Shutterstock

Sources: MONEY, Esquire – Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future

To cover the rest of his tuition, Musk and a buddy would turn their house 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 said.

Tesla Elon Musk, CEO of Tesla Motors, reacts to a reporter's question following the electric automaker’s initial public offering on Nasdaq, Tuesday, June, 29, 2010 in New York.

<p class= — Tesla Elon Musk, CEO of Tesla Motors, reacts to a reporter’s question following the electric automaker’s initial public offering on Nasdaq, Tuesday, June, 29, 2010 in New York.

AP Photo/Mark Lennihan

Sources: MONEY, Esquire – Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future

Musk graduated with a bachelor’s degree in physics and an economics degree from the Wharton School and moved to Stanford to pursue his PhD.

<p class= — REUTERS / Phil McCarten

Source: MONEY

He left the program within days to found an internet startup with his brother. They started Zip2, a city guide software for newspapers, with $28,000 in seed money from their father.

Kimbal Musk, Elon's brother.

<p class= — Kimbal Musk, Elon’s brother.

Fred Prouser/Reuters

Source: MONEY

Four years later, in 1999, they sold Zip2 for $307 million, earning Musk $22 million. He invested more than half of his earnings to cofound X.com, an online banking service.

Elon Musk at SpaceX Hyperloop Pod II competition in Hawthorne, California

<p class= — Elon Musk at SpaceX Hyperloop Pod II competition in Hawthorne, California

Reuters/Mike Blake

Source: MONEY

The company quickly merged with its rival and became PayPal, with Musk as the majority shareholder. In 2002, eBay bought PayPal and Musk walked away with $180 million.

Paypal CEO Dan Schulman (C) celebrates with employees during the company's relisting on the Nasdaq in New York.

<p class= — Paypal CEO Dan Schulman (C) celebrates with employees during the company’s relisting on the Nasdaq in New York.

Reuters/Lucas Jackson

Source: MONEY

Musk turned his attention to his new space exploration company, SpaceX, after leaving PayPal. A few years later he cofounded electric-car maker, Tesla, and then SolarCity, a solar power systems provider. The success of these companies eventually launched him into the billion-dollar club — but not before he went broke.

<p class= — Reuters

Source: VentureBeat

In late 2008, Musk divorced his first wife and it took a toll on his finances. A year later, Musk said he “ran out of cash” and had been living off loans from friends while trying to keep his companies afloat.

<p class= — Brendan McDermid/Reuters

Sources: VentureBeat, Forbes, TechCrunch

But when Tesla debuted on the stock market in 2010, Musk’s fortune sky rocketed. By 2012, he appeared on Forbes’ richest list for the first time with a net worth of $2 billion.

<p class= — Tesla

Source: Forbes

Over seven years later, Musk has amassed an $84.8 billion fortune — and he’s not shy when it comes to spending it.

<p class= — Getty/Kevork Djansezian

Source: Bloomberg

The CEO bought more than $100 million worth of residential property in California. He has since offloaded much of his real estate after vowing to sell it all and “own no house” on May 4.

<p class= — Google Maps

Source: The Real Deal, Variety, Business Insider

Musk went on a buying spree in Los Angeles’ ritzy Bel-Air neighborhood starting in late 2012, when he purchased a 1.67-acre estate for $17 million. The mansion has a two-story library, a home theater, a gym, and 1,000-bottle wine cellar.

<p class= — Google Maps

He also listed the neighboring ranch-style home he owns, which once belonged to Gene Wilder, at the same time.

Source: Variety, CNBC, Business Insider

As the leader of one of the preeminent auto-makers, it’s no surprise Musk has an affinity for cars. Back in 2013, he paid $920,000 at an auction for the Lotus Esprit submarine car used in a James Bond movie.

<p class= — AP

Source: MONEY, CNBC

In addition to driving Teslas, Musk owns two gas-powered cars: a Ford Model T and a Jaguar E-Type Series 1 Roadster.

Not Elon Musk's Jaguar.

<p class= — Not Elon Musk’s Jaguar.

DeFacto/Wikimedia Commons

Source: MONEY, CNBC

Despite having funds to spare, Musk isn’t a fan of lavish vacations — or any vacations for that matter. In 2015, he said he’d only taken two weeks off since founding SpaceX about 12 years earlier.

<p class= — Reuters/Bobby Yip; Business Insider/Dave Smith

Sources: Inc., Quartz

Musk has five children with his ex-wife Talulah Riley. In a 2014 tweet, Musk said he takes the kids on an annual camping trip. “I’m a pretty good dad,” he said. “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.”

Elon Musk with his twin sons and now ex-wife Talulah Riley.

<p class= — Elon Musk with his twin sons and now ex-wife Talulah Riley.

AP Photo/Mark Lennihan

Sources: Twitter, Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future

Musk and Canadian singer Grimes, his on-again, off-again girlfriend, welcomed a baby boy on May 4. They named the child X Æ A-12 Musk.

Musk and Grimes.

<p class= — Musk and Grimes.

Jason Kempin/Getty Images

Source: Business Insider

But by August 2018, Musk told The New York Times that he had taken to working 120 hours a week. “There were times when I didn’t leave the factory for three or four days — days when I didn’t go outside,” he told The Times. “This has really come at the expense of seeing my kids. And seeing friends.”

Engineer and tech entrepreneur Elon Musk of The Boring Company listens as Chicago Mayor Rahm Emanuel talks about constructing a high speed transit tunnel at Block 37 during a news conference on June 14, 2018 in Chicago, Illinois.

<p class= — Engineer and tech entrepreneur Elon Musk of The Boring Company listens as Chicago Mayor Rahm Emanuel talks about constructing a high speed transit tunnel at Block 37 during a news conference on June 14, 2018 in Chicago, Illinois.

Getty Images/Joshua Lott

Source: The New York Times

Musk said on an earnings call in 2017 that he doesn’t have a desk at the Tesla factory: “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.”

<p class= — Benjamin Zhang/Business Insider

Sources: Business Insider, Fortune

Musk admitted to spending “many late nights” at Tesla’s Nevada Gigafactory re-writing software during a production sprint for the Model 3.

Elon Musk showing YouTuber Marques Browne around the Gigafactory 1

<p class= — Elon Musk showing YouTuber Marques Browne around the Gigafactory 1

Marques Browne/YouTube

Source: Fortune

For a story published in August 2018, Business Insider reporters spoke with 42 Tesla employees, who said Musk is a visionary, but also unpredictably demanding.

<p class= — Tesla Motors

Source: Business Insider

Musk said in June 2019 that he even planned to spend his 48th birthday on June 28 at work, improving the company’s “global logistics.”

Tesla CEO Elon Musk walks onto the stage to introduce the Model Y at the company's design studio Thursday, March 14, 2019, in Hawthorne, Calif.

<p class= — Tesla CEO Elon Musk walks onto the stage to introduce the Model Y at the company’s design studio Thursday, March 14, 2019, in Hawthorne, Calif.

AP

Source: Business Insider

Musk told CBS’ “60 Minutes” that he is, in fact, “somewhat impulsive” and doesn’t “really want to try to adhere to some CEO template.”

<p class= — Getty

Source: Business Insider

Not only does Musk spend a ton of time at Tesla, he also spends a lot of his money on the company. In the first six months of 2018, he bought more than $35 million worth of shares in Tesla.

<p class= — Kevork Djansezian/Getty Images

Source: CNN

Musk also invests a lot of time, energy, and resources into SpaceX.

<p class= — John Raoux / AP Images

Source: Business Insider

SpaceX has raised more than $2.2 billion to develop, build, and launch Starlink, an effort to cover Earth in ultra-fast broadband internet and build the prototype of Starship, a gargantuan reusable space vehicle designed to bring people to Mars, reported Business Insider’s Dave Mosher. The company was valued at $33.3 billion in June 2019.

The Es'hail-2 mission launches toward space aboard one of SpaceX's Falcon 9 rockets on November 15, 2018.

<p class= — The Es’hail-2 mission launches toward space aboard one of SpaceX’s Falcon 9 rockets on November 15, 2018.

SpaceX/Flickr (public domain)

Source: Business Insider, CNBC

Musk also helms The Boring Company, which he founded in 2016 to develop and construct an underground tunnel in Los Angeles in an effort to mitigate traffic. In December 2018, Musk debuted the first prototype.

The Boring Company's Hawthorne, California, Tunnel.

<p class= — The Boring Company’s Hawthorne, California, Tunnel.

Robyn Beck/Pool via REUTERS

Source: Business Insider

According to The New York Times, The Boring Company raised over $112 million in 2018 — and more than 90% of it came from Musk.

<p class= — The Boring Company

Source: The New York Times

In 2012, Musk signed The Giving Pledge, vowing to donate the majority of his wealth during his lifetime. Though he’s already in the business of improving our environment and the future during his day job, Musk has made sizable donations to causes he cares about, including a $10 million gift to the Future of Life Institute to regulate artificial intelligence.

<p class= — jurvetson / Flickr

Sources: Twitter, Business Insider

Musk found himself in legal trouble with the SEC in 2018 after he tweeted that he had obtained the funding to take Tesla private, which moved the company’s stock price. Musk reached a settlement with the SEC in April 2019.

<p class= — Spencer Platt/Getty Images

Source: Business Insider

Musk moved Tesla share price again on May 1, sending it down 13% after tweeting “Tesla stock price is too high imo.”

FILE PHOTO: Tesla Inc CEO Elon Musk speaks at an opening ceremony for Tesla China-made Model Y program in Shanghai

<p class= — FILE PHOTO: Tesla Inc CEO Elon Musk speaks at an opening ceremony for Tesla China-made Model Y program in Shanghai

Reuters

Source: Markets Insider

At the end of the day, the multibillionaire says he enjoys inexpensive hobbies like listening to music, playing video games, and reading books. “Hang out with kids, see friends, normal stuff,” he said. “Sometimes go crazy on Twitter. But usually it’s work more.”

<p class= — REUTERS/Stephen Lam

Source: Quartz

Musk’s Twitter habits once again got him into legal trouble after Musk called the British cave diver who helped rescue a Thai soccer team a “pedo guy”; the diver sued Musk for defamation. A jury ruled in Musk’s favor in December 2019.

A courtroom sketch of British cave diver Vernon Unsworth during his defamation suit against Elon Musk.

<p class= — A courtroom sketch of British cave diver Vernon Unsworth during his defamation suit against Elon Musk.

REUTERS/Mona Shafer Edwards

Source: Business Insider

Musk has had plenty of headline-making outbursts both on- and offline. When a metal ball shattered the “armored glass” of Tesla’s Cybertruck during a demonstration in November, Musk said “oh my f—ing god.”

Elon Musk speaks after a failed demonstration of the Tesla Cybertruck.

<p class= — Elon Musk speaks after a failed demonstration of the Tesla Cybertruck.

Reuters

Source: Business Insider

The billionaire has more than tripled his net worth in 2020 so far, despite the coronavirus pandemic.

<p class= — Steve Nesius/Reuters

Source: Business Insider

Read the original article on Business Insider

Source Article