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

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

Business

‘Feel pain for investors who lost money’ – The Times of India

Published

on

‘Feel pain for investors who lost money’ – The Times of India


MUMBAI: Adani Group chairman Gautam Adani welcomed Sebi’s decision dismissing the allegations made by the US-based short seller Hindenburg Research. He also expressed sympathy for investors affected by the Jan 2023 Hindenburg report and called for an apology from those “spreading misleading narratives”. The infra tycoon, through a post on X, said: “After an exhaustive investigation, Sebi has reaffirmed what we have always maintained, that the Hindenburg claims were baseless… We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology.”





Source link

Continue Reading

Business

Hyundai outlines ambitious U.S. growth plans weeks after ICE immigration raid at battery plant

Published

on

Hyundai outlines ambitious U.S. growth plans weeks after ICE immigration raid at battery plant


Jose Munoz, president and CEO, Hyundai Motor Company, speaks during a media tour and grand opening at the Hyundai Motor Group Metaplant America, March 26, 2025, in Ellabell, Ga.

Mike Stewart | AP

NEW YORK — Hyundai Motor reinforced aggressive growth plans Thursday through the end of the decade, despite lowering its profit outlook for the year due to tariffs.

The new targets call for an operating profit margin this year of between 6% and 7%, down from 7% to 8%, and an increase in revenue of between 5% and 6% — up 2 percentage points — compared with 175.2 trillion South Korean won (US$12.7 billion) in 2024.

The South Korean automaker revised its financial targets Thursday ahead of a CEO investor day in New York City. It is the first time the company has hosted the event outside of South Korea as well as the first time CEO José Muñoz — who was promoted to the top job at the automaker beginning this year — led the meeting.

Along with revising financial targets, the world’s third-largest automaker reconfirmed its ambitious growth plans that include increasing annual sales to 5.55 million by 2030. Such results would mark a roughly 34% increase from its global sales last year of 4.14 million units.

Muñoz opened the meeting by discussing the company’s expansion plans, largely fueled by the U.S., which he called the “engine of growth” for the automaker. Hyundai is currently in the process of investing $26 billion from 2025 to 2028 to expand its operations in America. 

“This isn’t just about tariff mitigation, it is about building the most advanced, efficient manufacturing ecosystem in the automotive industry,” he said during the event, adding the U.S. is its largest opportunity for expanding localized manufacturing.

Hyundai aims to have more than 80% of its U.S. vehicle sales be produced locally by 2030. That compares to roughly 40% currently. That is expected to include a Hyundai-developed midsize pickup truck as well as potentially a more rugged SUV than the company currently offers, Muñoz said Thursday.

“I think it’s long overdue,” Muñoz told reporters after the event, calling it “a big opportunity.”

The CEO investor event is occurring at an inopportune time for the company, as well as relations between the U.S. and South Korea.

A masked federal agent wearing a Homeland Security Investigations vest guards a site during a raid where about 300 South Koreans were among 475 people arrested at the site of a $4.3 billion project by Hyundai Motor and LG Energy Solution to build batteries for electric cars in Ellabell, Georgia, U.S. September 4, 2025 in a still image taken from a video.

U.s. Immigration And Customs Enf | Via Reuters

The New York meeting comes weeks after hundreds of workers were arrested during an immigration raid at a jointly owned battery plant between Hyundai and LG Energy Solution in Georgia.

About 475 workers, including more than 300 South Koreans, were arrested in the Sept. 4 raid at the plant in Ellabell, Georgia, according to U.S. immigration officials. Many workers who were detained returned home via a chartered plane following discussions between South Korea and U.S. officials.

Muñoz confirmed Thursday that those detained worked for suppliers, with no Hyundai employees being arrested.

The raid, which was the largest single-site enforcement operation in the U.S. Department of Homeland Security’s history, was conducted over suspicions about “unlawful” visas or immigration status of workers at the site, U.S. officials have said.

At the beginning of the Thursday meeting, Muñoz expressed “our sincere empathy” for the workers and their families who were impacted by the raid. He said he hopes the U.S. and South Korea can work together to resolve the issue and continue the healthy relationship between the two countries.

“As our executive chair said last week, we hope the U.S. and Korea can work on mutually beneficial solutions for short-term business travel, especially for specialized technical expertise,” Muñoz said.

His comments on visas echoed those from Bob Lee, North American president of LG Energy Solution. Lee on Monday said that may be the “one positive” to come from all this and expressed optimism about the company being able to avoid such actions in the future.

“We’re very supportive of this and we’re cautiously optimistic that this type of thing will not happen again,” Lee said at a Center for Automotive Research conference in Detroit.



Source link

Continue Reading

Trending