According to a regulatory filing, Tesla CEO Elon Musk donated 268,000 Tesla shares worth around $108.2 million as part of a massive charitable gesture for the New Year. Musk has carried on his custom of making sizable gifts at the end of the year for the third year in a row.
Musk gave shares worth $1.95 billion in 2022, and he gave his organization, the Musk Foundation, around $5.74 billion in 2021. These big donations are a component of Musk’s year-end tax structuring, which allows him to support organizations close to his heart while offsetting his substantial tax obligations.
Although the identities of the beneficiary charities were not revealed in the SEC filing, it was stated that the groups do not currently plan to sell the given shares.
Musk’s charity contributions are often linked to his philanthropic pursuits, which include the development of safe artificial intelligence for the good of mankind, human space exploration, renewable energy, and pediatric research.
The Foundation of Musk
The Musk Foundation was established in 2001 by Elon and Kimbal Musk and provides funding for a variety of initiatives, with a focus on space exploration, sustainable energy research, and the development of scientific and engineering education.
Additionally, the foundation supports the advancement of artificial intelligence for the good of mankind, a topic Musk has long championed. Although the precise recipients are yet unknown, his 2024 contribution to unnamed charity continues this tradition of philanthropy.
Musk’s fortune
Despite his generous donations, Elon Musk remains among the world’s wealthiest individuals. His estimated net worth is $408.3 billion, according to Forbes, and he still controls around 12.8% of Tesla.
Musk is at the forefront of the IT and economic sectors thanks to his substantial ownership in Tesla and his leadership of other important firms like SpaceX and X.
Impacts on Tesla’s Business and Stock
Following Musk’s gift, Tesla’s stock and sales have somewhat declined. On January 2, 2025, Tesla’s stock ended at $379.28, down 6.1%. The majority of equities saw losses as part of the broader market decline brought on by a stronger currency.
With delivery of 1.79 million vehicles in 2024, Tesla also saw a 1.1% decline in yearly sales, falling short of Wall Street’s forecast. Sales have been declining as a result of the economy and increased competition from Chinese firms, such as BYD. Despite all of this, Musk still owns a sizable amount of Tesla stock, so it appears that his donation was not motivated by a desire to generate cash from his holdings.
The Court Battle Concerning Musk’s Salary Package
During his charitable endeavors, Musk has also run into legal issues over his compensation package at Tesla. A Delaware court rejected Musk’s record-breaking compensation proposal in December 2024. Tesla shareholders have previously challenged the deal, which was then estimated to be worth $101.4 billion. Musk might not be able to get further money from Tesla if it is rejected. Nevertheless, the recent decline in Tesla’s stock and sales was insufficient to unseat Elon Musk’s electric vehicle manufacturing giant.
And in order to present a compelling argument against Elon Musk’s membership in these elite businesses outside of Tesla, it would be necessary to look at other areas in which Musk leaves his mark, such as his SpaceX organization, which is involved in the private space exploration industry, and his social media platform, X. According to the Bloomberg Billionaires Index, Musk achieved a historic milestone in December 2024 when he became the first person in history to have a net worth of more than $500 billion.
