Tesla CEO Elon Musk is among the most charismatic business leaders. However, he's controversial at the same time with a large army of lovers as well as haters. Tesla and other electric vehicle stocks have rallied sharply since the beginning of 2020. The rise in Tesla stock has made Elon Musk the world’s richest person ahead of Jeff Bezos. How much does Elon Musk make a day?
Elon Musk has added over $150 billion to his net worth over the last year. He's the first person in history to add over $100 billion to personal net worth in a year. Musk’s arch-rival and Amazon CEO Jeff Bezos also created a record in 2020. His net worth surpassed $200 billion and he became the first person to achieve the feat. Musk is now ahead of Bezos on the global billionaire list.
What’s Elon Musk’s income per day?
Elon Musk’s net worth was around $27.2 billion at the beginning of 2020. At the beginning of 2021, his net worth was around $185 billion, according to Forbes. Musk has added almost $158 billion to his net worth over the last year, which is almost $432 million per day.
Here we need to distinguish between Elon Musk’s net worth and income. While he is touted as the highest-paid CEO, Musk doesn't get any base salary from Tesla. He gets stock options from the company as part of the 2018 compensation plan that's linked to the company delivering key milestones.
Under the 10-year compensation plan, Musk can purchase 20,264,042 shares of Tesla stock at $350.2 per share. Looking at the surge in Tesla stock over the last year, it’s a fraction of its stock price. More tranches are remaining as part of Musk’s compensation plan. The compensation plan is based on Tesla’s market capitalization, revenues, and adjusted EBITDA.
According to a Bloomberg report, Musk has unlocked three tranches of stocks in 2020. After accounting for the purchase price, they represent a payout of almost $8.8 billion, which would mean an income of over $26 million per day in the first 334 days of 2020.
What is the source of Elon Musk’s wealth?
Most of Elon Musk’s wealth comes from his ownership of Tesla. He is the largest Tesla shareholder with around a 21 percent stake. According to Forbes, SpaceX, which isn't publicly traded, is valued at almost $36 billion.
Musk has pledged a large part of his stake in Tesla for loans. While Musk is the second-richest person globally, he is cash poor. He has been taking loans and mortgages for daily expenses and business investments. His wealth is tied to Tesla and SpaceX shares.
Did Musk sell his worldly possessions?
Musk is known for using Twitter as a great marketing tool and targeting legacy automakers. In May 2020, Musk tweeted that he would sell most of his physical assets and wouldn't own any house.
Later in an email exchange with The Wall Street Journal, Musk clarified that he isn't selling assets to raise cash. According to Musk, “I’m trying to make my life as simple as possible right now, so will only keep things that have sentimental value.” Musk is a self-declared socialist. In 2019, he supported Andrew Yang for the 2020 presidential election. Yang floated the idea of universal basic income.