Elon Musk is giving away $5.7 billion – but to whom?

Deepak Gupta February 21, 2022
Updated 2022/02/21 at 10:23 AM

The Entrepreneur Elon Musk is a phenomenon that is not always easy to grasp. He is not only the head of corporations like Tesla and SpaceX, but also the richest person in the world. The eyes of the world public rest not only on his person, but also quite specifically on his assets. Smaller and larger changes rarely go unnoticed.

Elon Musk sells millions of shares

Musk recently sold Tesla shares worth a good 5.7 billion US dollars. That corresponds to around five billion euros. As early as November, the philanthropist gave away or donated this not inconsiderable sum for previously unknown purposes. Although this process did not go unnoticed, it was still unclear to whom exactly the donation went. It was sometimes speculated that he wanted to trick something with the tax. It is surprising that Elon Musk himself has not yet spoken.

The entrepreneur provides his fans and critics with new updates almost every day. They primarily affect the automotive group Tesla and the private space company SpaceX. But Musk also occasionally says a word about cryptocurrencies and his shares. But as far as the donation in November is concerned, he had not yet commented. Only a mandatory notification to the US stock exchange supervisory authority SEC (United States Securities and Exchange Commission) shows that the Tesla CEO donated the money to charity.

The news network ntv speculates that this could specifically be the Musk Foundation. The non-profit organization founded in 2002 is primarily concerned with researching and promoting renewable energies and space exploration. It is nevertheless possible that tax optimization served as the reason for the donation. “Many super-rich have a foundation for this reason,” ntv quotes the financial expert Sandra Navadi as saying.

Why is Musk keeping quiet?

It is also quite possible that the sum initially stayed with his foundation. Time magazine confirms that Musk has made previous donations primarily through so-called donor-advised funds. This is a special type of investment fund that allows gifts to be stored indefinitely. In the case of stocks, their value may even continue to grow. The prerequisite, however, is that it is clear from the outset that the donations will sooner or later benefit charitable causes.

Donations of this magnitude leave you “vulnerable to claims from charities,” the Times quotes Scott Walter, president of the Capital Research Center, a Washington-based group that monitors philanthropy. This could also be the reason why Elon Musk has kept silent so far. “Let’s say he donates to a charter school. Every other charter school in America will be knocking on his door.”

Source: United States Securities and Exchange Commission; ntv; Times

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