Being one of the richest people on the planet, Elon Musk may argue with US Senator Bernie Sanders on paying taxes, but he does not shy away from making generous donations. Back in October 2021, Musk had responded to a tweet by researcher Eli David who shared a screengrab of a news report that read, “2 percent of Elon Musk’s wealth could solve world hunger, says director of UN Food scarcity organisation.”
In his response, the founder of SpaceX tweeted, “If WFP (World Food Programme) can describe on this Twitter thread exactly how $6B will solve world hunger, I will sell Tesla stock right now and do it.”
If WFP can describe on this Twitter thread exactly how $6B will solve world hunger, I will sell Tesla stock right now and do it.— Elon Musk (@elonmusk) October 31, 2021
It seems Musk stayed true to his word. According to a report by Forbes, the 50-year-old businessman disclosed on Monday that he donated more than $5 billion worth of shares in Tesla to an unspecified charity in November. This transaction came weeks after he promised to sell 10 per cent of his holdings in the company. Forbes cited a Securities and Exchange Commission filing, which shows that Musk transferred the 5,044,000 Tesla shares—which were worth more than $5.4 billion at the time—over the course of 10 days in November. The filing described the transfer as a “bona fide gift” to charity, but it did not reveal which charity received the shares.
Soon after Musk’s tweet asked the WFP to explain the usage of funds to end world hunger, WFP Executive Director David Beasley outlined a plan on Twitter and tagged the billionaire. In one of the tweets, Beasley wrote, “This hunger crisis is urgent, unprecedented, and avoidable. Elon Musk, you asked for a clear plan and open books. Here it is. We’re ready to talk with you, and anyone else, who is serious about saving lives. The ask is $6.6B to avert famine in 2022.”
This hunger crisis is urgent, unprecedented, AND avoidable. @elonmusk, you asked for a clear plan & open books. Here it is! We’re ready to talk with you – and anyone else – who is serious about saving lives. The ask is $6.6B to avert famine in 2022: https://t.co/eJLmfcMVqE— David Beasley (@WFPChief) November 15, 2021
However, it should also be noted that the huge transfer of shares came when Musk was trying to cover a multibillion-dollar tax bill that the Tesla founder would have incurred if he had chosen to exercise Tesla stock options worth $23 billion that are set to expire in August 2022, reported Forbes. In November, Musk tweeted a poll asking his followers whether he should sell 1o percent of his stocks in Tesla in an attempt to counter accusations of tax avoidance. Nearly 58% of the 3.5 million voters said “yes”.
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.Do you support this?
— Elon Musk (@elonmusk) November 6, 2021
According to Forbes estimation, Musk would need to sell some 17 million shares, worth almost $15 billion as of Monday’s close, to reach this goal, and he sold more than 9 million shares in November already.
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