Elon Musk Donates $5.7 Billion Worth Of Tesla Stock To Charity

There is seldom a day when Elon Musk does not occupy news headlines. Whether it's about his frequent tweets, crypto statements or any other activity done by him, it takes no time to hit the headlines everywhere. And the latest move is no exception.

The Billion-dollar Donation

NYTimes

Elon Musk has reportedly donated roughly $5.7 billion worth of Tesla's shares to a charity, as per CNN.

The donation of 5,044,000 shares was revealed earlier this week in a filing to the US Securities and Exchange Commission (SEC). The Tesla shares were gifted last year between November 19 and November 29 2021, according to the filing. But the name of the recipient(s) of the shares was not disclosed.

At the time of those donations, Tesla's stock was reportedly trading above $1,000 per share, as per CNN. This makes the donated shares worth $5.7 billion based on the average of the highest and lowest quoted price on the date of the transaction.

Also Read: Elon Musk Nudges McDonald's To Accept Dogecoin As Payment, It Responds With New Crypto 'Grimacecoin'

Second Biggest US Donor Of 2021

This donation would make Tesla CEO Elon Musk the second-biggest US donor for the year 2021. He trails only Bill Gates and Melinda French Gates, who gave $15 billion in 2021, in an annual ranking by the Chronicle of Philanthropy.

Also, previous securities filings indicate that Elon Musk sold Tesla shares worth over $16 billion in the last two months of 2021, with most of the proceeds going towards paying an estimated $11 billion US federal tax bill.

For the uninitiated, donated shares are not subject to capital gains tax, and their value can be used as a deduction to help offset the tax bill.

Although Elon Musk has established a foundation that makes grants in support of causes including pediatric research and science education, as per CNN, there aren't enough details available on its bare-bones website.

Also Read: Tesla CEO Elon Musk Calls Twitter's New NFT Profile Picture Feature 'Annoying'

The World Hunger Challenge

The Director of the UN World Food Programme (WFP) had challenged the world¡¯s richest person Elon Musk to make a donation that would help solve world hunger.

Responding to this, Musk had tweeted in October 2021 that if WFP can describe on this Twitter thread exactly how $6 billion will solve world hunger, I will sell Tesla stock right now and do it.

If WFP can describe on this Twitter thread exactly how $6B will solve world hunger, I will sell Tesla stock right now and do it.

¡ª Elon Musk (@elonmusk) October 31, 2021

While the WFP did respond with a plan, there hasn't been any word from Elon Musk.

A couple of days back, David Beasley, executive director of WFP, said in a statement, as per CNN, "There are millions of people around the world on the brink of starvation. Whether WFP receives any of this money is yet to be seen, but I am excited to hear that Elon is engaged. This is an amazing and great first step."

Also Read: Elon Musk Says Dogecoin Is Better For Transactions Than Bitcoin

For more such interesting content and the latest financial news, keep reading Worth. Click here.