How Elon Musk Makes And Spends His $20.1 Billion

Elon Musk: What we’re
looking at over there, that’s a quarter section of the Falcon 9. [Narrator] From SpaceX to Tesla, Elon Musk is the face of
some high-profile companies, and his current net worth
is around $20 billion. Where did all this money come from, and where does it all go? Here’s how Elon Musk makes
and spends his billions. Musk grew up in South Africa and taught himself how to code. At just 12 years old,
Musk sold the source code for his first video game for $500. Then, at age 24, Elon
and his brother, Kimbal, founded Zip2 with $28,000
of their father’s money. Zip2 provided a searchable
business directory, almost like an online version of the Yellow Pages with maps. Four years later, the brothers
sold Zip2 for $307 million. Musk used his $22 million share to cofound the
online-banking service Via merger, ended
up becoming PayPal, with Musk as a majority shareholder. When eBay purchased PayPal in 2002 for $1.5 billion, Musk made $180 million from the sale. Musk and other PayPal executives like Peter Thiel and Reid Hoffman have become known as the “PayPal Mafia.” They took their gains from the PayPal sale and put them into various
startups and funds. Their investments and creations include YouTube, LinkedIn, Uber,
and countless others that have become major players
in Silicon Valley today. Following the PayPal sale, Musk founded space-exploration
company SpaceX. SpaceX’s self-described
mission is “to enable humans to become a spacefaring civilization and a multi-planet species by building a self-sustaining
city on Mars.” The privately owned company is valued at $33.3 billion, according to CNBC. Musk himself is the largest
individual shareholder of SpaceX, with a 54% stake. While SpaceX shoots for the stars, Musk is most well-known for a company that’s at least a little
bit more down-to-earth. Automaker and energy company
Tesla was founded in 2003. It went public in 2010
and beat expectations with a $2.2 billion market cap. Just two years later, Musk made it onto Forbes’ richest
list for the first time, with an estimated net worth of $2 billion. Although Tesla helped
build Musk’s fortune, the future of the company remains unclear. In 2018, Musk had to
pay a $20 million fine and had to step down as
chairman for three years after triggering an SEC investigation when he tweeted about
taking Tesla private. Still, the company’s current valuation is $32.8 billion. He technically has a salary
of $56,000, for legal reasons, but doesn’t cash the paychecks. Instead, all of his compensation
comes through awards based on the company’s success. And if outer space and our
highways weren’t enough, another Musk venture
is looking underground. Musk has also founded The Boring Company, an infrastructure and
tunnel-construction company that hopes to build underground tunnels with an all-electric
transportation system built in. Musk was inspired to start the company after experiencing the
notoriously bad traffic of LA. According to Musk, The Boring Company’s
first commercial tunnel could be finished in Las
Vegas by the end of 2019. This and other high-profile contracts, like the one with
Chicago’s O’Hare Airport, has estimates for the company’s value as high as $16 billion. With all of these ambitious projects, Musk has amassed an incredible fortune. Here’s how he’s known
to spend his billions. Musk currently owns a $70
million real-estate portfolio. His properties include
several Bel Air estates. His first purchase, a $17 million mansion, includes a two-story library,
a home theater, a gym, and a thousand-bottle wine cellar. And of course, the Tesla cofounder has an affinity for cars. His car collection includes a $920,000 Lotus Esprit submarine car
used in a “James Bond” movie, a Ford Model T, and a Jaguar
E-Type Series 1 Roadster. As you can imagine, Musk
is a bit of a workaholic, so he’s not spending money on vacations. In a 2015 interview, Musk
claimed to only have taken off two separate weeks since
founding SpaceX in 2002. Instead, a lot of Musk’s money goes right back into his companies. The New York Times reported that 90% of the $112 million that
The Boring Company raised came from Elon Musk. And in 2018, Musk bought more than $35 million worth of shares in Tesla. He has also signed the Giving Pledge, started by Warren Buffett
and Bill and Melinda Gates, vowing to donate the
majority of his wealth during his lifetime. Musk has made a number of donations to important causes he cares about, including $10 million to
the Future of Life Institute for regulating artificial intelligence. Elon Musk has become somewhat
of a controversial figure, but his journey to becoming a
rocket-scientist billionaire remains impressive. And if humanity does
end up living on Mars, it could be thanks to Musk. If you liked this video, you
should check up BI Prime. We take you inside companies, industries, and markets you care about. Sign up through the link
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95 Replies to “How Elon Musk Makes And Spends His $20.1 Billion”

  1. When I die and if Elon decides to have a child again, I would want to volunteer myself to be that.

  2. He buys white lilies to plant which turn his kids faces orange. He gardens and ….. I presume that the home(s) don't mean too much and maybe he see this now. Maybe he wants to be humble and be himself again and change the world because maybe the attention is a distraction for his family. Just maybe he can return to a normal life and not be the CEO with a story. He is a funny man with a good heart and maybe money isn't everything.

  3. The guy who bought Elon's website must be proud, because of him Elon's would save the world and made Elon's first move to become successful in bussiness.

  4. Why would you bore sp many holes just to make a underground highways.. Just one is enough use highspeed trains…

  5. Net worth is not money… is value. You can have 20B net worth and not have any money to buy a burger. You can't do spent 20B of net worth unless you turn everything into money and then buy stuff.

  6. Elon doesn’t buy rolls royces, rolexes, or designer clothes. He spends it on another new company!

  7. a mission to Fukushima or Chernobyl would be a lot closer,but it too has it’s challenge,are you up to it?

  8. Does anyone else feel like it’s gonna be much harder for the next generation to make a lot of money like this because all of the billionaires out there right now are in the there 40s or around there and most of the got famous because the internet and all that stuff was newer so it didn’t have a bunch of stuff but now there’s almost everything you can imagine on it so how does the new generation do stuff like that. Thanks if you read all of this

  9. If you consider science, engineering, economics all together Elon Musk is the smartest person on the planet right now.

  10. When the first successful spacex landing in mars happen, he will instantly the richest and more powerful person on earth..

  11. I remember in high school freshman year my teacher told me to do an essay about something interesting to present in front of the class and it was about some electric cars and how they caught on fire and the teacher and the students said this why we don’t trust electric cars and the company wouldn’t be successful and I just look back and smirk and see how big the company has became and now I’m looking into investing in a model 3(:

  12. Narrator: (referencing Tesla) a little more down to Earth
    Tesla Roadster floating in the solar system: am i a joke to you

  13. Imagine this much energy going into Real and Free EDUCATION for All People AND for Birth Control. Lower Taxes and More Incentives for having Smaller families. More taxes for having more children.

  14. It's easy to be a workaholic when it is making you extremely richer because you own the company. And yes I am jealous because I dont have the guts to risk starting a business.

  15. I seem to like Elon Musk , he seems to be a real person who ain't just out for himself. He seems to really want to solve real world issues. Unlike Jeff Bezos who having never met him let's off a odor of arrogance and a genuine disdain for others who he considers less then him, and has no concern toward anything other then the making of more money to add to the piles he already has and could never go thru in 10 lifetimes. Jeff just comes off as an asshat and I dont believe I am wrong.

  16. He seems like a very humble and easy going billionaire with big plans. He's an innovator and dreamer, trying to change the world with a new and improved "The Jetson's" model. Kudos to him.

  17. The Greatest entrepreneur ever! He now has 3 multi-billion dollar companies, 4th around the corner, Neuralink.
    Of course he sold Paypal.

  18. Humans can't even live on earth, what makes anyone think they can live anywhere else. Some yoyo will mess up the mission or put everything in jeopardy. Not to be negative, but people are just dumb like that. Just think what we are doing to the planet and that is the answer. Elon musk is the only one that sees the potential. Too bad he is human. Like any other human, a costly mistake that is all it takes to bring us back to the stone age. Good luck and if Mars has any life, be certain we will kill it or pollute the heck out of it.


  20. Mark my word,
    Elon wants to build Interstellar Mining Company, and More

    Highly Automatic

    All Integrated with AI while he Control it like Hive Mind through Neuronlink

  21. What about a green house with methane fertilizer bulbs and it will react to make oxygen it was how we started if terrain and erosion most likely rain from comets which made sediment here, islands seagulls 'stop tweeting wrens all night it's not twitter!' In a condo under the lights like staples center. Then sink or swim. How forcible driven is to recreatebliklihood equations by our minds systems thus stardust

    I ain't got the loot but you don't want that root liability! Righr?

  22. if you read his interview by the rolling stones, he says that his dad never gave him the money to start. it was money that he gathered from his scholarship & by working some jobs. so it was kinda just him and his brother

  23. I'm confused as to what net worth means. Hes worth 20 billion but that's including his personal stake in SpaceX and tesla right? It's not like hes got these stakes in those 2 companies and 20 billion in the bank right?

  24. My god, her vocal cords and the part responsible for speech in her brain produce the most annoying voice that i have ever been burdened by. In other words

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