What Will Musk’s Net Worth Be If He Sells 10% of His Tesla Stock?

Mandatory Credit: Photo by Action Press/Shutterstock (12276248n)Armin Laschet (l), CDU Federal Chairman and Prime Minister of North Rhine-Westphalia and Elon Musk, Tesla head, speak to journalists before the later main entrance to Tesla Gigafactory.
Action Press/Shutterstock / Action Press/Shutterstock

The people have spoken, and billionaire Tesla CEO Elon Musk has said he will abide by their wishes to sell 10% of his Tesla stock. Would the sale make a dent in the net worth of the richest man in the world? And would the taxes he pays make a difference in helping the government subsidize additional stimulus funds for lower and middle-income Americans, pay down the national debt, or otherwise help our nation’s infrastructure?

See: Musk Has a $15 Billion Tax Bill Coming Up: Is That Why He Did a Twitter Poll?
Find: Musk Tweets Against Billionaire Tax as Means To Pay for Reconciliation Bill: Legitimate or Self-Serving?

Just how much money are we talking about?

Let’s run the numbers.

As of today, Elon Musk – the wealthiest man in the world – has a net worth of $310.5 billion, according to Forbes’ update. A portion of this is held in Tesla stock. On Saturday, Musk, who is now going by the name “Lorde Edge” on Twitter, shared, “Note, I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock.”

Currently, Musk holds 170.49 million shares of Tesla, a value of roughly $205 billion. If he sold 10% of those, he would off-load 17.049 million shares, for approximately $20 billion, assuming he sells when the share price is around $1,200.

Make Your Money Work Better for You

Taxes on the capital gains for the stock would be around $5 billion according to Forbes, pointing out that his gain is “enormous.” Musk purchased shares for roughly 49 cents, according to the SEC filing for Tesla’s initial public offering. The shares split 5 for 1 since then, making Musk’s cost basis for his initial investment just under 10 cents a share, according to Forbes.

If Musk sells his shares now, before they continue to fall as they are trending down on Monday morning, he will shave $20 billion off his net worth, coming in at $298 billion. Of that $20 billion, he would keep $15 billion and the government would get $5 billion.

See: This ‘Legal, Easy’ Tax Loophole Helps the Rich Avoid Biden’s Tax Increases
Find: The Ultra Rich Use This Retirement Strategy To Invest Millions Tax-Free — And You Can, Too

Musk’s new net worth would be $305.5 billion, and he would still be the richest person in the world. Rounding off, the government would still have $28.43 trillion in debt although if the tax money were used in other ways, it could pay for a portion of stimulus funds, the infrastructure bill, or other government programs.

More From GOBankingRates

Make Your Money Work Better for You

About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.