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How Elon Musk Makes And Spends His $20.1 Billion - YouTube
Channel: Business Insider
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Elon Musk: What we're
looking at over there,
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that's a quarter section of the Falcon 9.
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[Narrator] From SpaceX to Tesla,
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Elon Musk is the face of
some high-profile companies,
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and his current net worth
is around $20 billion.
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Where did all this money come from,
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and where does it all go?
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Here's how Elon Musk makes
and spends his billions.
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Musk grew up in South Africa
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and taught himself how to code.
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At just 12 years old,
Musk sold the source code
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for his first video game for $500.
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Then, at age 24, Elon
and his brother, Kimbal,
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founded Zip2 with $28,000
of their father's money.
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Zip2 provided a searchable
business directory,
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almost like an online version
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of the Yellow Pages with maps.
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Four years later, the brothers
sold Zip2 for $307 million.
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Musk used his $22 million share
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to cofound the
online-banking service X.com.
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Via merger, X.com ended
up becoming PayPal,
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with Musk as a majority shareholder.
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When eBay purchased PayPal in 2002
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for $1.5 billion,
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Musk made $180 million from the sale.
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Musk and other PayPal executives
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like Peter Thiel and Reid Hoffman
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have become known as the "PayPal Mafia."
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They took their gains from the PayPal sale
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and put them into various
startups and funds.
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Their investments and creations include
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YouTube, LinkedIn, Uber,
and countless others
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that have become major players
in Silicon Valley today.
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Following the PayPal sale,
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Musk founded space-exploration
company SpaceX.
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SpaceX's self-described
mission is "to enable humans
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to become a spacefaring civilization
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and a multi-planet species
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by building a self-sustaining
city on Mars."
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The privately owned company
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is valued at $33.3 billion,
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according to CNBC.
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Musk himself is the largest
individual shareholder
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of SpaceX, with a 54% stake.
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While SpaceX shoots for the stars,
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Musk is most well-known for a company
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that's at least a little
bit more down-to-earth.
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Automaker and energy company
Tesla was founded in 2003.
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It went public in 2010
and beat expectations
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with a $2.2 billion market cap.
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Just two years later, Musk made it
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onto Forbes' richest
list for the first time,
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with an estimated net worth of $2 billion.
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Although Tesla helped
build Musk's fortune,
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the future of the company remains unclear.
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In 2018, Musk had to
pay a $20 million fine
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and had to step down as
chairman for three years
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after triggering an SEC investigation
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when he tweeted about
taking Tesla private.
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Still, the company's current valuation
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is $32.8 billion.
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He technically has a salary
of $56,000, for legal reasons,
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but doesn't cash the paychecks.
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Instead, all of his compensation
comes through awards
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based on the company's success.
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And if outer space and our
highways weren't enough,
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another Musk venture
is looking underground.
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Musk has also founded The Boring Company,
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an infrastructure and
tunnel-construction company
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that hopes to build underground tunnels
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with an all-electric
transportation system built in.
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Musk was inspired to start the company
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after experiencing the
notoriously bad traffic of LA.
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According to Musk,
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The Boring Company's
first commercial tunnel
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could be finished in Las
Vegas by the end of 2019.
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This and other high-profile contracts,
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like the one with
Chicago's O'Hare Airport,
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has estimates for the company's value
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as high as $16 billion.
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With all of these ambitious projects,
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Musk has amassed an incredible fortune.
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Here's how he's known
to spend his billions.
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Musk currently owns a $70
million real-estate portfolio.
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His properties include
several Bel Air estates.
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His first purchase, a $17 million mansion,
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includes a two-story library,
a home theater, a gym,
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and a thousand-bottle wine cellar.
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And of course, the Tesla cofounder
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has an affinity for cars.
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His car collection includes a $920,000
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Lotus Esprit submarine car
used in a "James Bond" movie,
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a Ford Model T, and a Jaguar
E-Type Series 1 Roadster.
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As you can imagine, Musk
is a bit of a workaholic,
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so he's not spending money on vacations.
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In a 2015 interview, Musk
claimed to only have taken off
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two separate weeks since
founding SpaceX in 2002.
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Instead, a lot of Musk's money
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goes right back into his companies.
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The New York Times reported that 90%
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of the $112 million that
The Boring Company raised
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came from Elon Musk.
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And in 2018, Musk bought more than
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$35 million worth of shares in Tesla.
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He has also signed the Giving Pledge,
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started by Warren Buffett
and Bill and Melinda Gates,
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vowing to donate the
majority of his wealth
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during his lifetime.
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Musk has made a number of donations
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to important causes he cares about,
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including $10 million to
the Future of Life Institute
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for regulating artificial intelligence.
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Elon Musk has become somewhat
of a controversial figure,
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but his journey to becoming a
rocket-scientist billionaire
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remains impressive.
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And if humanity does
end up living on Mars,
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it could be thanks to Musk.
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