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Musk donates more than $5 billion to charities

San Francisco (Reuters) – February 15, 2022. 10:25

Musk donated more than 5 million shares of his Tesla stock

  • Musk made a donation from November 19 to 29 in favor of charities
  • Warren Buffett and George Soros have donated over 20% of their net worth as of early September

Donate CEO Tesla Elon Musk purchased more than 5 million shares of his Tesla stock, to charity last November

According to a report submitted to the Securities and Exchange Commission, the co-founder of Tesla made a donation Elon Musk The company sold 5,044,000 shares in the electric-car maker from November 19 to 29, according to the company.Reuters
The donation was worth $5.7 billion, based on average prices on the days he sold the shares. The charity that received the donations was not named in Musk’s disclosure.

Musk made a donation coinciding with the time he was selling shares in Tesla for billions of dollars to fund a tax bill on the exercise of his stock options in the company that will expire in August.

Musk: It will become the largest taxpayer in US history, reaching $11 billion

The value of the shares that Musk sold last year was estimated at more than 15 billion dollars, while he said in a tweet that he would become the largest taxpayer in US history, reaching 11 billion dollars.

Late last year, billionaire Elon Musk sold $16.4 billion worth of stock after polling Twitter users about offloading 10% of his stake in electric car maker Tesla.
Musk tweeted last year that he will pay more than $11 billion in taxes in 2021 due to his exercise of stock options that are set to expire this year.
Analysts following the matter said there would be a tax benefit on gifting the Tesla stock holder. This is because shares that are donated to charities are not subject to capital gains tax, as if they were sold.
His tax benefit would be huge.

Bob Lord: Musk would have saved between 40% and 50% of the $5.7 billion in taxes, depending on whether he could take the deduction from his California income and that he would avoid the dividend tax he would have to pay.

Bob Lord, associate fellow at the Institute for Policy Studies who studies tax policy, said that Musk would have saved between 40% and 50% of $5.7 billion in taxes, depending on whether he could take the deduction from his California income and that he avoided the dividend tax. which he will have to pay.
He added that Musk may have contributed the stock to intermediaries such as “donor-advised funds”, rather than directly to charitable groups.

Musk donates more than $5 billion to charities
Tesla car (Getty Images)

Rich Donations

Musk’s public charitable initiatives have so far trailed other billionaires, with Musk and Jeff Bezos founder of “Amazon”, less than 1% of their net worth, while Warren Buffett and George Soros have donated more than 20% of their net worth as of early September, according to Forbes magazine.

In 2001, he founded the Musk Foundation, which offers grants to “develop secure artificial intelligence for the benefit of humanity” among other causes, according to its website. The Musk Foundation has more than $200 million in assets.

Earlier last year, Musk and his foundation offered to award $100 million in prizes to whoever could devise technology to help remove carbon from the atmosphere.
He said he has donated $20 million to schools in Cameron County, Texas where the SpaceX launch site is located, and $10 million to the city of Brownsville.

Musk was also flirting with more ambitious charitable goals.
He tweeted last year, “If (the UN World Food Program) could describe exactly how it would solve $6 billion in world hunger, I would sell Tesla stock now.

Musk was responding to a plea for donations from David Beasley, executive director of the World Food Program.

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