How Elon Musk Makes And Spends His Billions

how Elan musk makes and spends his money Elon Musk is a billionaire and tech industry icon who breaks the mold of his peers his entrepreneurial spirit started young and he's been making money in Ludacris some since his youth in South Africa though he's an outspoken and highly controversial figure it's impossible to deny that musk has taken the tech world by storm with companies like PayPal Tesla and SpaceX among others with a net worth of twenty one point four billion dollars he has some serious buying power but of me I forgot to introduce myself I'm mr. luxury and if you're interested for more videos about all things money can buy and make sure to check out my channel there's a link at the top of the description now Elon Musk was born on the 28th of June in 1971 in Pretoria South Africa from the canadian mae Halderman and the south african errol musk musk was fascinated by science fiction and computers in his adolescent years when he was 12 he wrote the code for his own video game and actually sold it to a company in his late teens he emigrated to Canada in order to avoid the required military service for white males in South Africa thanks to his mother's Canadian ties he was able to enroll at Queen's University in Kingston one of Ontario's top schools after graduating he moved on to the University of Pennsylvania during his time at UPenn the billionaire visionary and his roommate converted their college house into a nightclub so they could make money to pay rent musk had planned on a career in business and Lee worked at a Canadian bank one summer as a college intern this was his only real job before he became an internet entrepreneur after he transferred to the University of Pennsylvania he earned a bachelor's degree in economics and a second bachelor's in physics a year later from there he won admission to the prestigious doctoral program at Stanford University in California where he planned to concentrate on a PhD in energy physics he moved to California just as the internet boom starting in 1995 and he decided he wanted to be in on the action he dropped out of Stanford after just two days in order to start his first company zip2 corporation this was an online city guide aimed at the newspaper publishing business and musk was able to land contracts with both the New York Times and the Chicago Tribune to provide content for their new online sites musk was just 24 when he started the company and he devoted all of his energies to see it succeed he lived in the same rented office that served as his company's headquarters sleeping on a futon couch and showering at a local YMCA which was cheaper than renting an apartment he explained in an interview with Roger Glen of The Sunday Times of London still the company struggled to fulfill its contracts and meet the payroll in other costs and he looked for outside financing eventually a group of venture capitalists investors who provide startup money to new businesses financed zip2 with 3.6 million dollars but he gave up majority control of the company in exchange probably Elon Musk is great step 4 came from online financial services especially because his creation still has an effect on our everyday lives he co-founded x.com in 1999 a sort of online bank that would soon become PayPal one of the most used and famous online payment methods in the world the platform was so successful that eBay decided to buy it in 2002 PayPal closed the fourth trimester of 2016 with a three hundred and sixty seven million dollar profit a 26 percent increase from the previous year it currently pulls in almost two billion dollars profit every year after PayPal musk turned his sights on the cosmos he was long convinced that for life to survive humanity needs to become a multi-planet species however he was dissatisfied with the great expense of rocket launches in 2002 he founded Space Exploration Technologies or SpaceX for short to make more affordable rockets in a way musk also invented the first reusable rocket the Falcon 9 the rocket used to refuel the International Space Station and bring satellites into orbit it can use the same engine for multiple launches and return to base without a pilot a third rocket the Falcon Heavy first launched in 2018 was designed to carry a hundred and seventeen thousand pounds into orbit nearly twice as much as its largest competitor the Boeing company's delta 4 heavy for only one-third of the cost spacex also developed the dragon spacecraft which carries supplies to the international space station and is designed to carry as many as seven astronauts musk sought to reduce the expense of space flight by developing a fully reusable rocket that could lift off and return to the pad at launch from beginning back in 2012 SpaceX is grasshopper rocket made several short flights to test such technology in addition to being CEO of SpaceX musk was also chief designer in building the Falcon rockets dragon and grasshopper musk declare at this point I'm highly confident that it's possible to achieve at least a hundredfold reduction in the cost of space access a completely reusable rocket has never been made before rapid and complete reusability of rockets is really the key to opening up space and becoming a spacefaring civilization according to the entrepreneur the first human mission to Mars could realistically take place in 2022 the Internet and space exploration are only two of Musk's intuitions another theme that fascinates him is energy especially what concerns renewable energy this is why he created Tesla Motors in 2003 a car manufacturer that will revolutionize the idea of electric cars the first Tesla Roadster was produced in 2008 a supercar that was able to reach 200 km/h it immediately had great success even though wood was very expensive both to build and to buy it is no longer in production but two thousand of these cars were made it was obviously a toy that can only be afforded by few people but it allowed musk to invest and create the first electric luxury sedan the model ass this car has beaten numerous rackets with more than a 400 kilometer range for the first model the following model reached 900 kilometers it's also the first car with an autopilot and an integrated connection to the web Tesla offers much more since Musk's idea is for electric cars to be accessible to everyone after the futuristic Model X an SUV with gullwing doors Tesla recently created a compact car called the model 3 it costs around 30000 euros even though it will probably reach 50 thousand after accessory options musk promise that we won't stop until every car on the road is electric with all of these various ventures no two days are the same for Elon Musk he spends Mondays and Fridays at SpaceX in Los Angeles on Tuesdays Wednesdays and Thursdays he heads to the Bay Area to work on Tesla quarts estimates that he spends an average of 42 hours a week working at Tesla and 40 hours a week working over at SpaceX he also told Y Combinator that he usually spent about half a day working at the artificial intelligence non profit opened AI with this impressive portfolio of business ventures musk is earning money from a wide variety of revenue streams so what exactly is he spending his money on well first of all he has an extremely impressive real estate portfolio in 2016 musk paid twenty four and a quarter million to buy a new mansion in Los Angeles's ritzy bel-air neighborhood and he has his sights on much more surprisingly this is actually his fifth home in the same neighborhood though it's still under construction combine that with the 48 million he spent on previous homes and his total real estate dent in the area is around 72 million all the homes are close in proximity giving the mogul his own personal compound in an extremely pricey ZIP code in the foothills of the Santa Monica Mountains these days his main residence is a mansion he bought in 2012 after renting it their pad at 20,000 248 square feet contains seven bedrooms nine bathrooms in combination with the rest of the compound musk has much more real estate than a family of six could ever use a notorious workaholic musk does not spend cash on lavish vacations or expensive hobbies instead the entrepreneur spends most of his time at the office or in factories so that he can guarantee profitability for each of his companies this is particularly important in the case of Tesla because must refuses to take a salary there he doesn't even earn bonuses stock or even a minimum wage this is to prove his commitment to investors essentially must will be rewarded with stock options as the company progresses as it reaches 12 different financial milestones the company will trigger a payout for musk culminating in a payment of over 50 billion if Tesla grows in an expected rate it's obvious that must believes in the company because in 2018 he bought even deeper into Tesla it was announced that musk had bought 70 two thousand five hundred shares of Tesla when shares were trading at three hundred and forty two dollars according to an SEC filing the total purchase was worth about twenty four point nine million dollars Tesla has an abundance of skeptics but musk has continued to fork over the cash for shares in the electric car maker back in early May musk bought thirty three thousand Tesla shares then worth about ten million shares were trading just below three hundred dollars at that point musk is Tesla's largest shareholder he now owns about thirty three point seven million shares of Tesla a roughly nineteen percent slice of all outstanding shares musk made his purchases shortly after Tesla said it would cut about nine percent of its workforce for forty six thousand employees in salaried roles outside vehicle production the company is trying to improve efficiency and profitability as it continues the frequently delayed and often struggling production of its model three sedan despite Musk's apparent confidence Tesla is the most shorted us equity with a twelve point eight two billion dollar short exposure according to financial analytics from s three partners that's twenty two percent of all shares outstanding on top of his massive real estate portfolio and stock buybacks musk has acquired a whole host of luxury items given his affinity for making waves in the auto industry it's no surprise that musk has a taste for fancy cars back in 2013 he paid nine hundred and twenty thousand dollars at an auction for the Lotus Esprit submarine car which was made famous in a James Bond movie in addition to driving his own products musk owns two gas-powered cars a Ford Model T and a Jaguar e-type Series 1 Roadster musk also bought a McLaren f1 supercar but crashed it in 2017 the car is believed to inspire Elan to make performance oriented cars that tesla manufactures today in keeping with this workaholic lifestyle musk almost never takes vacations though of course he can afford luxurious trips in 2015 he said he's only taken two weeks off since founding SpaceX about 12 years earlier much of Musk's time and money goes to his five young children in a 2014 tweet musk said he takes the kids on an annual camping trip I'm a pretty good dad he said I have the kids for a little more than half the week and spend a little time with him but by August 2018 musk told the New York Times that he has taken to working a hundred and twenty hours a week there were times when I did not leave the factory for three or four days days when I did not go outside he told the times this has really come to the expense of seeing my kids and seeing friends however musk has had one of his Bel Air properties converted into a full-time private schoolhouse for his kids it might not be a replacement for quality time but it's certainly a good start but despite his adoration of his children musk will ultimately give away their full inheritance after signing Bill and Melinda Gates giving pledge more than a hundred and fifty billionaires and billionaire couples have signed the giving pledge to donate a majority of their fortunes to charity and a new report from financial research company wealth axe predicts the pledge may be worth as much as six hundred billion by 2022 while some claim that musk would be better off using his assets to ensure the success of his various philanthropic business ventures his signature on the Giving Pledge is undoubtedly selfless thank you for watching this video if you enjoyed make sure to leave a like and subscribe and if you'd like to see more of my content make sure to check out my channel at the top of the description as always I'm mr. luxury gift to doodly-doo

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Keywords: elon musk, forbes, billionaire, elon musk house, elon musk car, how elon musk spends his billions, luxury lifestyle, private jet, investments, tesla, spacex, cars, mansions, tesla roadster, richest person, elon musk interview, day in the life, viral, new

Id: 4azmgU_OyNo

Length: 13min 38sec (818 seconds)

Published: Mon Feb 04 2019