Musk Makes 10 Trillion Won Selling Tesla Shares... Charities Worldwide Stirred

Elon Musk Secures Over 10 Trillion Won in Cash... Focus on Usage
Charity Group: "Musk Will Gain Opportunity to Exert Significant Influence if He Donates"
Speculation He Will Donate to Save Taxes
Experts: "Donations Are a Win-Win, Saving Taxes as Well"

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] Elon Musk, CEO of Tesla, has sold Tesla shares worth $9 billion (approximately 10.71 trillion KRW) over the past two weeks. Since Musk announced his intention to sell 10% of his Tesla stake, he has been continuously selling his shares.

According to Bloomberg's Billionaires Index, as of the 20th (local time), Musk, who holds assets worth $311 billion (approximately 370 trillion KRW), has been securing cash assets consecutively, drawing attention to how these funds will be used.

Meanwhile, expectations among charitable organizations are growing. Since Musk is expected to sell additional shares over the coming weeks to fulfill his promise of selling 10% of his stake, it is anticipated that at least 10 trillion KRW in cash will be raised, leading to speculation that some of these funds may be donated.

Melissa Berman, CEO of Rockefeller Philanthropy Advisors, one of the leading charitable organizations in the U.S., said, "If Musk donates a significant amount to major organizations addressing urgent issues such as global poverty and access to healthcare, he will have an opportunity to make a substantial impact on society."

Currently, Musk’s donation amount is relatively low compared to other billionaire entrepreneurs.

Investment legends like Warren Buffett, CEO of Berkshire Hathaway, and prominent U.S. investor George Soros have each already donated 20% of their wealth.

However, Musk has donated less than 1% of his wealth so far.

That said, there is a possibility that Musk has made donations privately.

He also signed The Giving Pledge in 2012, a commitment by the world’s billionaires to donate at least half of their wealth to society, requiring a minimum net worth of $1 billion (approximately 1.1 trillion KRW) to participate.

In addition, Musk established the Musk Foundation in 2001 under his name, starting donation activities with the goal of "developing safe artificial intelligence for the betterment of humanity."

Earlier this year, Musk also announced a prize of up to $50 million (approximately 60 billion KRW) for those developing technology capable of removing carbon from the atmosphere.

Musk’s tweet in January asking Twitter users about "ways to donate that can create real change" is also interpreted as a sign of his willingness to donate.

Some speculate that Musk may be compelled to donate, at least partially, for tax benefits.

Ray Madoff, a law professor at Boston College, said, "Almost all billionaires donate to save on taxes."

Especially for Musk, whose wealth is mostly in stock, donating shares?which are not subject to capital gains tax?could be a way to effectively avoid paying taxes.

Brian Mittendorf, an accounting professor at Ohio State University, said, "It’s a win-win through donations," adding, "He (Musk) has significant motivation to donate."

With Tesla’s stock price soaring, surpassing 'Thousand Tesla' and even eyeing 'Twelve Hundred Tesla,' some see this as the optimal timing for Musk to realize gains and achieve tax savings simultaneously through donations.

Bob Lord, a fellow at the Policy Studies Institute, questioned, "If you were going to donate stock, when would you do it?" emphasizing, "It would be when the stock price is at its peak."

This content was produced with the assistance of AI translation services.