Inside Look Secrets Of How Does Elon Musk Make Money

Inside Look: Secrets of How Does Elon Musk Make Money

Elon Musk is one of the richest people alive yet he takes a salary of $1 per year only. We’d try to uncover some of the most critical investment secrets that keep him rich

While Elon Musk is one of the most high net-worth individuals in the world, his actual liquid money is negligible. Let me explain, the net worth is value of all the assets, so, it does not include the value of money in bank.

How Does Elon Make Money

Elon Musk makes a nominal salary of $1 per year from SpaceX and Tesla. Clearly, that’s not enough for his living. That’s why he uses various other method to generate cash flow.

First up, Tesla provided him stocks whenever he achieves predefined performance targets. These stocks when sold generate a handsome revenue. Besides, he also has investments in assets including cryptocurrency.

Even after that, the finances don’t work out. That’s because, he has a relatively modest lifestyle for a centi-billionaire that allows Musk to survive on lesser income. Before going into his actual cashflow, let’s understand the basic difference between cash flow (income) and net worth.

Elon Musk Income vs Net worth

Simply put, income is the inflow of money in a given time period for an individual. Whereas, net worth is the current value of the assets owned by the individual. 

As most of us own more assets than the actual money in our banks, our net worth also tend to be significantly higher than the net worth.

Same as the case for Elon Musk. When we call Elon Musk one of the richest man on the planet, its based on his net worth. There are clearly more high paid individuals in this world than Elon Musk. Sundar Pichai, CEO of Google, for example takes home a salary of about $200 million per annum.

Elon Musk’s net worth majorly comprises of his stake in Tesla, SpaceX, and various other companies. Obviously, the shares are rarely sold by Elon Musk, thus those shares account for his net worth but do not contribute to his income.

So, now, before talking about how Elon Musk makes money, let’s understand Elon Musk lifestyle

Elon Musk Expenses

Today Elon Musk has sold all these assets to liquify his money. His current residence is a tiny home worth $45,000 which is cheaper than the home of an average American. Elon Musk makes a lot of money by selling his expensive homes, cars, and various other items.

Today, he avoid having any major personal expensive apart from the notable exception of his private jet. His private jet is a necessity rather than a luxury as it helps him swiftly go to different headquarters of his different companies.

Elon Musk Sources of Income

After selling his assets in his former companies like Zip2, and, Elon Musk had gained over $180 Million. These funds were enough to provide him a lavish lifestyle, wherein he bought expensive homes in Los Angeles and many super cars.

Today, he has started selling most of these assets allowing which have been a significant source of his income. Apart from that he has various investments.

Couple of years ago he himself confirmed that he was invested in Ethereum and Dogecoin.

He is awarded really valuable portion of Tesla shares whenever companies achieves certain predefined goals. These awarded Tesla shares also a significant part of how Elon Musk makes money.

The Verdict

So, how does Elon Musk earn money? Elon Musk relies on stock options and various other incentives that he receives from his companies.

His expenses are really low thanks to overall modest lifestyle and low-cost living. His only major expense is of private jet, which probably is funded by his companies.

Apart from that, his sales of personal assets including real estate have contributed to his cash flow helping him survive better.

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Thanks for Reading,

Warm Regards,

Aditya AgarwalLast Seen: Mar 22, 2023 @ 4:29pm 16MarUTC

Aditya Agarwal


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