The filing of Tesla CEO Elon Musk with the U.S. Securities and Exchange Commission (SEC) lately reveals a total donation of 5,044,000 shares to a charity between November 19 and 29 in 2021 and it was worth $5.74 billion. However, theÂ name of the charity was not disclosed in the filing.
He sold $16.4 billion worth of his shares in the company after polling Twitter users related to offloading 10 percent of the stake. He stated would be paying over $11 billion as taxes then as his exercise of stock options was to expire.
The billionaire simultaneously traded barbs with Elizabeth Warren and Bernie Sanders who called that more taxes should be paid by wealthy people.
According to analysts, Musk could enjoy tax benefits by gifting part of his Tesla stock as capital gains tax is incurred to donations made to charity. Institute for Policy Studies' associate fellow Bob Lord said the tax benefit for him would be huge and somewhere between 40 percent and 50 percent of the $5.7 billion in tax.
He further said that Musk may not have contributed the shares outright to charity groups, but to intermediaries like donor-advised funds.
With the huge donation, Musk is now ranked as the second biggest donor in America following Bill Gates and Melinda French Gates. Forbes writes Warren Buffett and George Soros have donated over 20 percent of their net worth while Tesla boss and Amazon founder Jeff Bezos have donated less than 1 percent.
His Musk Foundation offers grants for artificial intelligence development that would benefit humanity. It offered $100 million prizes in 2021 to those who helped in removing carbon from the atmosphere.
Musk donated $20 million to schools in Texas and $10 million to the City of Brownsville in 2021 and simultaneously flirted more ambitious philanthropy goals.
One of his earlier tweets stated he will sell Tesla stock if the UN World Food Programme can reveal how a $6 billion fund may solve world hunger. He simultaneously asked users about ways to donate that make a difference.
Elon Musk is the founder, CEO and Chief Engineer at SpaceX. He is a business magnate and an entrepreneur. He is the CEO and Product Architect of Tesla, Inc. He is the founder of The Boring Company. He co-founded OpenAI and Neuralink. He co-founded online financial services X.com and later merged it with online bank Confinity.
In 2012, his net worth was $2 billion and he was listed on the Forbes Billionaires List. His wealth increased to $27 billion at the start of 2020 and reached $150 billion by the end of 2020. His net worth turned $185 billion in January 2021 and it reached more than $300 billion in November 2021.