- Elon Musk, CEO of Tesla and SpaceX, has a net worth around $US21.5 billion.
- Musk has never received a paycheck from Tesla, refusing his $US56,000 minimum salary every year.
- He now says he will not receive any form of payment or compensation until Tesla reaches $US100 billion in market cap.
Elon Musk may be the world’s richest rocket scientist.
The 46-year-old CEO of Tesla and SpaceX and cofounder of OpenAI has said he won’t be happy until we’ve escaped Earth and colonised Mars. Luckily, he has the mind and the money to make it happen.
Despite a massive net worth hovering around $US21.5 billion, Musk has never taken a paycheck from Tesla, refusing his $US56,000 minimum salary every year.
On Tuesday, Tesla announced it would pay Musk nothing for the next 10 years – no salary, bonus, or stock – until the company reaches a $US100 billion market cap. If and when that happens, Musk could potentially overtake Amazon CEO Jeff Bezos as the richest person in the world.
A notorious workaholic, Musk doesn’t spend cash on lavish vacations or expensive hobbies. Instead, the entrepreneur spends most of his time at the office or in factories, retreating to one of his four Los Angeles mansions at the end of the day.
Scroll through to find out what we know about how Musk, a father of five, amassed his fortune and how he spends it.
As a child growing up in South Africa, Musk taught himself to code. By the time he was 12, he sold the source code for his first video game for $US500.
Just before his 18th birthday, Musk moved to Canada and worked a series of hard labour jobs, including shoveling grain, cutting logs, and eventually cleaning out the boiler room in a lumber mill for $US18 an hour — an impressive wage in 1989.
Musk got a pay cut to $US14 an hour when he started a summer internship alongside his brother, Kimbal, at the Bank of Nova Scotia after cold-calling — and impressing — a top executive there.
After he arrived for his freshman year at Queens University in 1990, Musk quickly picked up a side hustle selling computer parts and full PCs to other students. “I could build something to suit their needs like a tricked-out gaming machine or a simple word processor that cost less than what they could get in a store,” Musk said.
Within two years, Musk transferred to the University of Pennsylvania on a partial scholarship. To cover the rest of his tuition, Musk and a buddy would turn their house into a speakeasy on the weekends, charging $US5 at the door. “I was paying my own way through college and could make an entire month’s rent in one night,” Musk said.
Musk graduated with a bachelor’s degree in physics and an economics degree from the Wharton School and moved to Stanford to pursue his PhD. He left the program within days to found an internet startup with his brother. They started Zip2, a city guide software for newspapers, with $US28,000 in seed money from their father.
Four years later, in 1999, they sold Zip2 for $US307 million, earning Musk $US22 million. He invested more than half of his earnings to cofound X.com, an online banking service. The company quickly merged with its rival and became PayPal with Musk as the majority shareholder. In 2002, eBay bought PayPal and Musk walked away with $US180 million.
Musk turned his attention to his new space exploration company, SpaceX, after leaving PayPal. A few years later he cofounded electric-car maker, Tesla, and then SolarCity, a solar power systems provider. The success of these companies eventually launched him into the billion-dollar club — but not before he went broke.
In late 2008, Musk divorced his first wife and it took a toll on his finances. A year later, Musk said he “ran out of cash” and had been living off loans from friends while trying to keep his companies afloat. But when Tesla debuted on the stock market in 2010, Musk’s fortune sky rocketed. By 2012, he appeared on Forbes’ richest list for the first time with a net worth of $US2 billion.
More than five years later Musk has amassed a $US20.4 billion fortune — and he’s not shy when it comes to spending it.
The CEO owns more than $US70 million worth of residential property in the Bel-Air neighbourhood of Los Angeles. His fifth and latest home purchase: a $US24 million as-of-yet unfinished estate.
Musk initiated his Bel-Air buying spree in late 2012, when the then-bachelor purchased a 1.67-acre estate for $US17 million. The 20,248-square-foot mansion has a two-story library, a home theatre, a gym, and 1,000-bottle wine cellar.
As the leader of one of the preeminent auto-makers, it’s no surprise Musk has an affinity for cars. Back in 2013, he paid $US920,000 at an auction for the Lotus Esprit submarine car used in a James Bond movie. In addition to driving Teslas, he owns two gas-powered cars: a Ford Model T and a Jaguar E-Type Series 1 Roadster.
Despite having funds to spare, Musk isn’t a fan of lavish vacations — or any vacations for that matter. In 2015, he said he’d only taken two weeks off since founding SpaceX about 12 years earlier. He reportedly works 80 to 90 hours a week.
But he always carves out time for his kids. “I’m a pretty good dad,” Musk said. “I have the kids for slightly more than half the week and spend a fair bit of time with them. I also take them with me when I go out of town.” According to a 2014 tweet, Musk said he and his five sons go on an annual camping trip.
In 2012, Musk signed the Giving Pledge vowing to donate the majority of his wealth during his lifetime. Though he’s already in the business of improving our environment and the future during his day job, Musk has made sizable donations to causes he cares about, including a $US10 million gift to the Future of Life Institute to regulate artificial intelligence.
At the end of the day, the multi-billionaire enjoys inexpensive hobbies like listening to music, playing video games, and reading books. “Hang out with kids, see friends, normal stuff,” he said. “Sometimes go crazy on Twitter. But usually it’s work more.”