Connect with us

Business

Most of Elon Musk’s fortune now comes from his private companies

Published

on

Most of Elon Musk’s fortune now comes from his private companies


Tesla and SpaceX CEO Elon Musk arrives to the inauguration of U.S. President-elect Donald Trump in the Rotunda of the U.S. Capitol on Jan. 20, 2025 in Washington, DC. 

Chip Somodevilla | Via Reuters

A version of this article appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.

Tesla said it needed to incentivize CEO Elon Musk with a record-breaking pay package in order to compete with his private companies, according to a proxy the company filed last week.

The filing outlines a share award that could be worth $1 trillion if it all pays out. Tesla also said Musk’s other companies — mainly SpaceX and xAI Holdings — now account for most of his wealth and therefore will command most of his attention unless Tesla pays him more.

“A majority of Mr. Musk’s wealth is now derived from other business ventures outside of Tesla, and he has more attractive options today than ever before,” the proxy said. The pay package of up to 423 million shares is necessary, it added, to prevent Musk from “prioritizing other ventures.”

It will be up to shareholders to approve the package, of course. But the proxy highlights the surging valuations of Musk’s private companies and the competing interests of xAI, SpaceX and Tesla.

Until last year, the vast majority of Musk’s wealth came from his Tesla stock. The Bloomberg Billionaires Index pegs Musk’s wealth at about $385 billion, while Forbes estimates his wealth is at $436 billion. The difference is likely tied to his 2018 pay package, which is still in dispute and is valued at between $60 billion and $100 billion. If the compensation plan is restored, and/or he receives an interim comp package proposed in the proxy, Musk’s net worth is closer to $436 billion.

Today, less than half of that fortune comes from Tesla stock.

Get Inside Wealth directly to your inbox

Based on his current ownership of 13% of the company, Musk’s Tesla shares are worth about $140 billion. Musk has argued that he needs at least 25% of voting control of Tesla to prevent the company from being taken over as it develops highly sensitive and powerful artificial intelligence technology and robots.

At SpaceX and xAI, he has more voting control, with 42% of SpaceX and a majority stake in xAI. SpaceX is planning an insider share sale that would reportedly value the company at $400 billion, nearly double its valuation last year. At the $400 billion valuation, Musk’s stake would be worth about $170 billion — more than the value of his current Tesla stake.

xAI’s valuation has grown even faster, from $80 billion at the start of the year to a potential $200 billion in a new fundraising round. Musk owns more than 50% of the company, putting his stake well over $100 billion.

Together, Musk’s stake in xAI and SpaceX are now worth nearly twice as much as his Tesla shares. Added to his stakes in Neuralink — valued at around $9 billion — and his other companies, his private company wealth eclipses his Tesla wealth.

Of course, that may not be for long. If he is awarded the 423.7 million shares of restricted stock in the new 2025 compensation plan, and if Tesla hits its target valuation of $8.5 trillion, Musk’s Tesla shares would be worth over $2 trillion.



Source link

Business

Adani Power, Adani Green: Adani Stocks Soar Up To 9% As SEBI Dismisses Hindenburg Allegations

Published

on

Adani Power, Adani Green: Adani Stocks Soar Up To 9% As SEBI Dismisses Hindenburg Allegations


Last Updated:

News18

News18

Adani Group stocks, including Adani Enterprises, Adani Green Energy, Adani Power, and Adani Ports & SEZ, rallied as much as 9% in Friday’s session after the Securities and Exchange Board of India (SEBI) dismissed allegations by US-based short-seller Hindenburg Research. The regulator said that while related-party transactions through entities such as Adicorp, Milestone, and Rehvar did take place, they were fully disclosed and complied with existing regulations.

Click here to add News18 as your preferred news source on Google. Stay updated with all the latest business news, including market trendsstock updatestax, IPO, banking finance, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the News18 App to stay updated.
News business markets Adani Power, Adani Green: Adani Stocks Soar Up To 9% As SEBI Dismisses Hindenburg Allegations
Disclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.

Read More



Source link

Continue Reading

Business

‘India & China are ancient civilisations’: Russia slams Trump tariffs; warns threat won’t work – The Times of India

Published

on

‘India & China are ancient civilisations’: Russia slams Trump tariffs; warns threat won’t work – The Times of India


Russia slammed US tariff threats against India and China, calling them “ancient civilisations” and claiming that threat to them “won’t work,” and that both the nations are unlikely to bow down to ultimatums.Speaking on Russia’s main Channel 1 TV programme “The Great Game,” Foreign minister Sergei Lavrov said, “Both China and India are ancient civilisations. And talking to them like ‘either you stop doing what I don’t like or I’ll impose tariffs on you’ won’t work. And the ongoing contacts between Beijing and Washington, between New Delhi and Washington, show that the American side understands it, too.”The comments came against the backdrop of escalating US criticism of India for continuing to import oil from Moscow despite the ongoing Russia-Ukraine war.The Donald Trump administration recently hiked tariffs on Indian goods from 25% on August 7 to 50% by August 27, directly citing New Delhi’s oil purchases from Moscow.Lavrov pointed out that US trade threats have forced countries like India and China to look for “new markets, new sources of energy supplies” and pay higher costs.“Besides the fact that this undermines the economic well-being of those countries, it at least creates very serious difficulties for them, forcing them to seek new markets, new sources of energy supplies, (and) forcing them to pay higher prices,” he said.“But beyond this, and perhaps even more importantly than this, there is a moral and political opposition to this approach,” he added.

Trump: Close ties but tough measures

During his recent state visit to Britain, Trump struck a contradictory tone, stressing his personal ties with Prime Minister Narendra Modi even as he defended sanctions on India.“When I found out that the European nations were buying oil from Russia, I am very close to India and to the PM of India, I wished him a happy birthday the other day, we have a very good relationship, but I sanctioned them (India),” he said.“If the price of oil comes down, Putin will have no choice but to drop out of that war,” he added. He further argued that India’s continued energy trade with Moscow was “not playing fair with the US.”White House trade adviser Peter Navarro echoed this hard line, branding India the “maharaja of tariffs” and accusing Indian refiners of “profiteering” by working closely with Russian suppliers after the invasion. “Indian refiners were in bed with Russian refiners immediately after the invasion. They make money off us via unfair trade and many workers get screwed. They use that money to buy Russian oil, and Russians use that to buy weapons,” Navarro alleged.

Lavrov dismisses Russia sanctions

Lavrov, however, dismissed concerns over new rounds of sanctions, saying Russia had already adapted to such measures. “Frankly speaking, I don’t see any problem with the new sanctions imposed on Russia. An enormous amount of sanctions, unprecedented for that period, were imposed during President Donald Trump’s first term,” Lavrov said.Reflecting on the broader trajectory of US policy, he added, “We have started to draw conclusions from the situation when the West imposed these sanctions. Later, during President Joe Biden’s term, sanctions were used as a replacement for any diplomatic effort. There was no search for a compromise.”Despite tensions, India and the US have been in talks for an interim trade deal over the past few months. But with tariffs rising and geopolitical pressures mounting, both New Delhi and Beijing continue to assert their independent paths, reinforced by Moscow’s backing.





Source link

Continue Reading

Business

University students like me are happier living at home – here’s why

Published

on

University students like me are happier living at home – here’s why


Iolo CheungBBC Wales and

Ellie CarterBBC Wales

BBC A girl in a white top smiling at the camera BBC

Only two of Kirsty’s coursemates actually live on the university campus

Leaving home to go to university was once considered a rite of passage.

But university student Kirsty Holpin, who lives with her grandmother and drives to lectures each day, says only two of her course mates actually live on campus.

“The rest of us travel in,” says the 23-year-old, who is one of a growing number of students choosing to live at home with family instead of moving into student digs.

UCAS figures suggest the number of students intending to live at home has doubled in the last 20 years, with rising rent cited as a major factor. Other reasons include shifting priorities towards academic study, rather than drinking and socialising.

Now in her third year studying psychology and criminology at the University of South Wales, Kirsty drives 35 minutes from her home in Fochriw, Caerphilly county, to the campus in Treforest, Rhondda Cynon Taf, to attend lectures.

“When we were pricing it up [for halls] it was extortionate,” she said.

“So as a family it was, ‘would you rather stay home, or go and basically work your butt off to make rent?'”

Kirsty admits that the decision did leave her more “isolated” when it came to social opportunities, but doesn’t regret her choice.

‘Not much of a drinker’

Kirsty admits living on campus would have given her a better social life.

“But I’m not much of a social drinker anyway,” she said.

“And I can always travel down to university if I need to for events, and make time for that.

“At home I have a brilliant, supportive environment, so I can get everything done like assignments – if I was at uni halls, I probably wouldn’t have achieved as much as I have.”

She says blended learning has made things easier for her and others, with more lectures now having the option of being attended remotely.

And without the need to be on campus every day, some students are going to extreme lengths.

“There’s a girl I met last year who was travelling from the West Midlands,” says Kirsty.

“She said it’s much easier to book a hotel room and spend £90 a night when she needs to come down, than spend £600 on rent.”

A recent survey by campaign group Save The Student found that 15% of students in the UK now live with parents or guardians – an increase from 12% in 2020 – with average travel times to campus also rising from 21 to 26 minutes.

“It doesn’t sound like a huge change, but if you look at it in terms of the number of students across the UK, that is quite a significant movement,” said spokesperson Tom Allingham.

In Wales, students now spend an average of £473 a month on rent, while in England the average figure is £556 and in Scotland it is £663, according to Save The Student.

“It’s no surprise that we’re seeing this change, because of factors like the availability and cost of housing, and bills,” says Deio Owen, president of the National Union of Students (NUS) in Wales.

“And stories we see all the time about problems in student housing doesn’t help the narrative, it doesn’t entice people to move to student accommodation.”

But priorities may also have shifted, says Mr Owen, with many students not feeling that a campus lifestyle is key to their university experience any more.

“The traditional idea of people going to university to go out drinking and stuff, that’s not necessarily the de facto behaviour of students anymore,” he says.

“People are deciding to stay in, do sober socials, and students’ unions are key for that to work.

“So it’s crucial that any students who decide not to move to a campus-based university, or close by, don’t miss out on that socialising.”

Getty Images A group of students in a lecture theatre, sat down making notesGetty Images

15% of university students now live at home with parents or guardians, according to a recent survey

Isaac Williams, 20, is studying for a Culinary Arts degree at Coleg Llandrillo in Conwy, and says living at his family home and travelling 15 minutes to campus each day “just made sense”.

For him, academic and financial considerations are more important factors than socialising.

“I just want to go to uni so I can get my degree, and have a more successful career,” he says.

“I’ve got a group of friends from other aspects of my life.

“And I have an older brother who’s also staying at home while doing a uni degree. So it just works out well money-wise.”

Isaac, a young man wearing a beige hoodie with a black jumper, with short dark blonde hair, smiles at the camera

Isaac says academic achievement and money are more important factors to him than socialising

‘I was getting crazy fomo’

Research suggests the number of students planning to stay at home has doubled in the last 20 years.

But at the University of South Wales’ freshers event in Cardiff, many students were still keen to embrace the chance to move out of their parents’ house while studying.

“It was just to get the taste of independence, a sort of practice run for living on your own,” said Sophie Davies, 20, from Neath.

Her friend Morgan Lees, 18, from Merthyr Tydfil, added: “Staying at home while being at uni takes away some of the social aspects of it, and that was really important for me.”

Sophie Evans, 20, from Pontypridd, Rhondda Cynon Taf, started off living at home – but only took a month to change her mind and move into university accommodation.

“Everyone else was going out and stuff, I was getting crazy fomo [fear of missing out], and I was booking hotels or staying with people,” she said.

“So I thought it was better if I move away and have that sense of independence, and I did – having to budget by myself and live like a functioning person.”

Joe Williams, 20, from Swansea said the social life had been a key factor in choosing to live on campus.

“Just being around everyone, it was easy,” he said.

“I go back [home] often enough. The costs aren’t too bad, and I was going back home on weekends to work, so it was OK.”



Source link

Continue Reading

Trending