Philanthropist Musk? Donate over $ 5.7 billion in Tesla stock

Last November, the American businessman allegedly donated a package of shares corresponding to the value of 5.7 billion, earmarking for a charity that remained anonymous

Emiliano Ragoni

February 18

– Milan

Elon Musk is perhaps one of the most controversial and idolized entrepreneurs of recent times. In addition to being one of the richest men in the world, he is also known for some of his statements that are sometimes a bit over the top, especially when it comes to automated driving. The philanthropist Musk, however, was still unknown to most. Aspect of the personality that has instead emerged recently. According to what was communicated by the Securities and Exchange Commission (SEC), the US federal body in charge of stock exchange supervision, Elon Musk, CEO of Tesla, in the period from 19 to 29 November 2021, would have donated a total of 5,044. 000 of shares of the automaker with the largest market capitalization in the world to a charity. The donation, based on the closing prices of Tesla shares over the five days the shares were donated, was worth $ 5.74 billion. The SEC did not disclose the name of the charity.

donation and tax benefits

The donation came in the period last November when the billionaire sold $ 16.4 billion worth of shares after a Twitter user survey. According to analysts, Musk could benefit from a tax advantage in giving away Tesla shares, since the shares donated to charity are not subject to the capital gains tax, applicable in the event of their sale. Bob Lord of the Institute for Political Studies which studies fiscal policy, said: “His tax benefit would be huge. He would save between 40% and 50% of the $ 5.7 billion in taxes, depending on who he is eligible for. deduction from his income and would avoid the capital gains tax he would have to pay if he sold the shares. ” According to Lord Musk, he may have distributed the shares to intermediaries such as donor-advised funds, and not directly to charities. Tesla was not available for comment.

Philanthropist Musk?

According to data from the Chronicle of Philanthropy, the donation ranks Musk as the second largest American philanthropist after Bill Gates and Melinda French Gates. According to business magazine Forbes, Musk and Amazon founder Jeff Bezos donated less than 1% of their net worth, while Warren Buffett and George Soros donated more than 20% in early September. Elon Musk is also president of the Musk Foundation, which offers grants for the “development of safe artificial intelligence for the benefit of humanity.” Last year, Tesla boss and the foundation offered $ 100 million in prizes to those who can propose a technology that can help remove carbon from the atmosphere. Also in 2021, Elon Musk said he would donate $ 20 million to schools in Cameron County, Texas, the location of a Space X launch site, and $ 10 million to the city of Brownsville.



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