A recent Tesla, Inc. filing with the United States Securities and Exchange Commission (SEC) has revealed that the company’s CEO Elon Musk has donated more the $5 billion worth of Tesla (TSLA) stock to charity. The Ownership Disclosure filing was published yesterday on the SEC website yesterday (14th Feb 2022).
The Form 5 filing reveals that Elon Musk transferred a total of 5,044,000 shares of TSLA common stock to a trust. These shares were transferred in 5 transactions as listed below. All of these transactions were completed in November 2021.
|Transaction #||Number of common TSLA shares||Date|
Since there is no specific charity organization mentioned in the SEC filing (screenshot copy below), it is easy to understand that this money has gone to the Musk Foundation. The Musk Foundation website lists the following sectors where it utilizes its grants:
- Renewable energy research and advocacy
- Human space exploration research and advocacy
- Pediatric research
- Science and engineering education
- Development of safe artificial intelligence to benefit humanity
Since the share price of Tesla is going up and down daily and hourly, the amount of this donation is jumping up and below the $5 billion mark. This is clearly one of the largest charity amounts donated by any billionaire in history.
At the time these tranches of donation were going to charity, Elon Musk was under the media radar for not paying taxes on unrealized gains (Tesla stock). However, Elon Musk announced that he is going to be selling around 10% of his Tesla shares to pay over $11 billion in taxes in 2021.
$11 billion in taxes plus $5 billion in charity makes Elon Musk one of the top individual contributors to the United States economy.
Musk Foundation gave out two major grants last year. The charity gave $5 million to Khan Academy for making education accessible for everyone and $50 million to Inspiration4 civilian space mission fundraiser for St. Jude Children’s Research Hospital.
With this latest $5 billion donation, it will be interesting to watch where this money goes and how successfully it is utilized for the betterment of humanity.