How Much Elon Makes Per Second! - YouTube

Elon Reeve Musk is the founder, CEO,  CTO, and chief engineer of SpaceX. We  

also know that he is a pioneer investor,  CEO, and product architect of Tesla, Inc.  

and one of the highest-earning business  magnates, industrial designers,  

and engineers. But, have you ever wondered  how much this tycoon earns in a second?

Welcome to Elon Musk Zone!

In this video, we’ll attempt to generate the  daily or even hourly figure he’s earning.

Tesla CEO Elon Musk is among the  most charismatic business leaders.  

However, he's controversial at the same time  with a large army of lovers as well as haters.  

Tesla and other electric vehicle stocks have  rallied sharply since the beginning of 2020.  

But how much does Elon Musk make a  day, an hour, a minute, a second?

At the start of 2020, Musk was the  35th richest person in the world.  

He's the first person in history to add  over $100 billion to personal net worth in  

a year. He became the first person to achieve  the feat. Throughout that year, his net worth  

increased by $150 billion, largely driven by his  ownership of around 20% of Tesla stock. During  

this, Musk's net worth was often volatile. For  example, it dropped $16.3 billion in September,  

the largest such plunge according to  Bloomberg. In November of that year,  

Musk passed Facebook co-founder Mark Zuckerberg  to become the third-richest person in the world;  

a week later he passed Microsoft co-founder  Bill Gates to become the second richest.  

In January 2021, Musk, with a net worth of $185  billion, surpassed Amazon founder Jeff Bezos to  

become the richest person in the world. Bezos  reclaimed the top spot the following month.

So, after Tesla’s share jumped nearly 20 percent,  marking its biggest gain in more than a year,  

Musk’s net worth jumped to a whopping $174 billion  on the Bloomberg Billionaires Index. Now let us  

dig deeper into his salary. As Chief Executive  Officer at Tesla, Inc., Elon Musk made $23, 760  

in total compensation. But what made him so rich  with just this amount of dollars from his company?  

Though around three-quarters of Musk’s wealth  is derived from Tesla, he does not receive that  

much of a salary. Nonetheless, Musk agreed to  a compensation plan with the board. And it is  

an "at-risk performance award" that "ensures  [Musk] will be compensated only if Tesla and  

all of its shareholders do extraordinarily well.  Created in 2018, the deal stipulated that Musk  

only receives compensation if Tesla reached  certain market values. It was the largest such  

deal ever done between a CEO and board. In the  first award, given in May 2020, he was eligible  

to purchase 1.69 million TSLA shares - around one  percent of the company - at below-market prices.

Here we need to distinguish between Elon Musk’s  net worth and income. While he is touted as the  

highest-paid CEO, Musk doesn't get any base salary  from Tesla. He gets stock options from the company  

as part of the 2018 compensation plan that's  linked to the company delivering key milestones.  

There is one concrete clue when it  comes to the value of Musk’s time.  

Announced in January was Tesla’s compensation plan  for Musk over the next 10 years. Tesla claims its  

CEO will receive “no guaranteed compensation  of any kind” -- we’re talking salaries,  

cash bonuses, equity over time. Instead, his  payout will depend entirely on performance,  

namely a series of revenue-based milestones. To  receive his maximum possible compensation, Musk  

will need to lead the charge in Tesla’s reaching  its ultimate goal: a market cap of $650 billion.

The typical formula for determining the value  of time involves salary and annual earnings,  

but for someone like Musk, that’s almost  impossible. For one, even though his Tesla  

salary is public (minimum wage in the state  of California), he rarely takes it. Second,  

his salary at SpaceX -- a private company -- is  unknown. Finally, undisclosed capital gains and  

potential dividends mean that although we  have an idea of Musk’s net worth -- about  

$23 billion -- we’ll likely never know his  take-home earnings per year. Under the 10-year  

compensation plan, Musk can purchase 20,264,042  shares of Tesla stock at $350.2 per share. 

Looking at the surge in Tesla stock over the  last year, it’s a fraction of its stock price.  

More tranches are remaining as part of Musk’s  compensation plan. The compensation plan is  

based on Tesla’s market capitalization, revenues,  and adjusted EBITDA. Joining the benchmark index  

for US equities will put Tesla stock in the  portfolios of countless index-tracking funds,  

and the many managed funds that would  follow suit to balance their holdings.

According to a Bloomberg report, Musk has  unlocked three tranches of stocks in 2020.  

After accounting for the purchase price, they  represent a payout of almost $8.8 billion,  

which would mean an income of over $26  million per day in the first 334 days of 2020. 

Currently, Musk says he’s working 120 hours a  week. That translates to just over 17 hours a day,  

more than 6,240 hours per year, and, over the  next 10 years, over 62,400 hours of work. If  

Musk’s total 10-year payout is a theoretical $55.8  billion, that means if he sticks to the same work  

schedule in delivering Tesla to its goal, every  hour of his time could be worth close to $900,000.  

Currently, Musk says he’s working 120 hours a  week. That translates to just over 17 hours a day,  

more than 6,240 hours per year, and, over the next  10 years, over 62,400 hours of work. If Musk’s  

total 10-year payout is a theoretical $55.8  billion, that means if he sticks to the same work  

schedule in delivering Tesla to its goal, every  hour of his time could be worth close to $900,000.

Meanwhile, it would take the average  UK worker three weeks, four days,  

and an hour to make what Tim Cook, chief  executive of Apple, makes in five minutes:  

£2,606; and three weeks and three hours to earn  what Jonathan Gray, the president of asset manager  

Blackstone, earns in five minutes: £2,097. When  the news surged that the electric carmaker will  

be included in the mainstream indexes, Tesla’s  CEO has skyrocketed his share-based wealth, too.  

So much so, that it would take the average  British person 17 weeks and one hour to earn  

what Tesla’s founder and CEO Elon Musk do in five  minutes (£11,600), according to new research.

But that’s just it: Even if each hour of Elon  Musk’s time in office should theoretically earn  

him $900,000, there’s no guarantee. That’s because  Musk’s payout is entirely performance-based.  

Tesla makes it clear that the CEO’s  compensation is completely at risk:  

If Musk doesn’t deliver on any of the contractual  milestones, he will earn a grand total of $0.

Does Musk keep worldly possessions? No. Musk is  known for using Twitter as a great marketing tool  

and targeting legacy automakers. In May 2020,  

Musk tweeted that he would sell most of his  physical assets and wouldn't own any house.

A report of Gigacalculator found out that Elon  Musk makes $21,030 in five working minutes. This  

means he is making $140.20 in a second! Based  on the average full-time salary of $48,360,  

it would take a normal person 22  weeks, two days, and three hours  

to make the same amount that the  Tesla boss makes in five minutes. 

Given the figures, how does  he want to spend his wealth?

For the time being, Musk's  wealth is largely in Tesla stock.  

Bezos, who owns over 10 percent of  Amazon, has sold off his own stock  

piece-by-piece — $2.9 billion in  2019 and over $10 billion in 2020.  

That still left him with almost $170 billion in  Amazon stock, according to CNBC in November 2020.  

Bezos has stated that his goal is to give around  $1 billion per year to his rocket launch startup,  

Blue Origin. Assuming Musk still only plans to  spend around half his wealth on a self-sustaining  

city on Mars, it seems he might only just be able  to afford the low-end estimate. Musk has been  

criticized for this plan before. Director Werner  Herzog described it to Inverse in November 2020  

as an "obscenity," while entrepreneur Jack Ma said  in August 2019 that Earth "needs more heroes."

But Musk has suggested the plan  doesn't cost as much as it seems.  

During his August 2019 appearance with Ma,  he said that the plan would require around  

half a percent to one percent of  the world's gross domestic product.  

This figure is somewhere between the  amounts spent on cosmetics and healthcare.

The World Bank estimated the world’s gross  domestic product at $85.7 trillion for 2018,  

which would suggest an expenditure of $400 to $900  billion. Musk described it as "a wise investment  

for the future." Musk has regularly claimed  he wants to use his money to fund his Mars  

city goal. In May 2020, he declared he was also  selling "almost all physical possessions." Later  

that month, he said on the Joe Rogan Experience  that possessions "kind of weigh you down."

In terms of charity, Musk's contributions  have come under scrutiny. He's a signatory  

to the Giving Pledge, where the world's richest  commit to giving the majority of their wealth  

to philanthropy. But The Guardian reported in  November 2020 that his charitable foundation,  

the Musk Foundation, has only  given around $100 million away.

A Quartz analysis in October 2020 found Musk  had donated around $257 million to the fund.  

The fund had given 86 percent of its wealth to  three sources, two of which were donor-advised  

funds. These funds, commonly used by billionaires,  are criticized for a lack of transparency. 

Musk has pledged to give half his wealth  to philanthropy or charitable causes.  

He will have to increase  his contributions if he has  

any chance of meeting this goal in his lifetime  — a shift he suggests would happen in about 2038.

So there you have it, folks. However,  how much you might be earning right now,  

just spend it right and do things right.  If you find the video interesting,  

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Thank you for watching Elon Musk Zone!  We’ll hope to see you in the next videos!