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On the Eve of an IPO, Tesla Founder Elon Musk Claims He's Broke
Musk, who co-founded PayPal and cashed out for $200 million, says he invested his last $35 million in Tesla Motors -- just as the company prepares to go public.
Posted 6/ 22 10 at 6:00 PM | News, Technology, Money, Leadership, Taxes & Accounting, Legal Issues, Consumer Products & Services, Energy, Engineering, Logistics & Transportation, Inventions & Innovations
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Elon Musk, the co-founder of PayPal, an environmental business pioneer, and the model for Iron Man's Tony Stark, is considered one of the biggest entrepreneurial success stories of the past decade. And now, he's apparently broke.Only eight years ago, Musk was one of three co-founders to sell PayPal to eBay for $1.5 billion, making $200 million in cash off the sale of his stocks. Musk says, like many entrepreneurs, he has since invested all his money in his businesses -- which include electric car company Tesla Motors, space exploration technology company SpaceX, and full-service solar provider SolarCity -- and has been borrowing money from friends to keep afloat. "About four months ago, I ran out of cash," he wrote in a divorce court filing this February. He recently told The New York Times he invested the last $35 million he had into Tesla.
As part of his divorce proceedings, Musk reported he had just $8,255 in monthly income and $650,000 in liquid assets, with $200,000 per month in expenses.
Some may speculate whether the public admission is connected to the fact that his ex-wife was asking for the house, alimony, child support, $6 million, a cut of Tesla and stock in SpaceX -- or if Musk is truly broke. But it's not a classic riches-to-rags story just yet: SpaceX has a contract with NASA worth $1.6 billion, and with Tesla's IPO rumored to take place next week, the Times reports that if all goes well, Musk could walk away with $21 million and still own 65 percent.
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Comments (Page 1 of 2)
HAHAHAHAHAHAHAHAHAHAHAHA!!! He should change his name to Tucker. Green & Clean is a great concept but like the flying cars they promised us in the 50's and 60's, it just ain't gonna trump dirty oil and its Robber Barons! Oils well that ends well except in the Gulf of Texico.
With Tiger Woods losing somewhere between 20 and 40 million in endorsements, a huge divorce settlement looming in the background, and not doing so well on the links, it is possible that Tiger will have to declare bankruptcy in the not to distant future. Golf winnings are a pittance compared to corporate endorsements and as the silver has already been tarnished, don't look for his earnings to keep up with his expenses.
This is not the platform for advertising your website. Cease and desist.
$200 million and he's broke? Give me $200 million and I won't be broke if I live to 100.
What I'm supposed to feel bad?
So, apparently, the notion to set aside a fraction of that $200 million as an asset to himself did not arrive to this individual?
I mean, he could have set aside $10 million and, at least, lived off the interest of that money through bank loans and wise, low yield long term investments (LOW RISK). Or, just stash the cash somewhere for a rainy day if you don't trust the banks.
I'm sorry, but I can't feel any empathy for this guy; he foolishly squandered his fortune. Now, if someone stole his money from him, that's a different thing, but that's not the case here.
Sure, he spent his money towards things he believed in but it's reckless of him to gamble ALL of his money towards those ventures without considering the risks and how to buffer his financial security against the possible failures of his endeavors.
He brought this particular kind of misfortune upon himself.
if you are rich you have to be careful of what you are, you should be GOOD, KIND ,HELPFUL and respect the money. RICH PEOPLE WHO GOT BROKE THEY ARE BAD PEOPLE, THATS THE CARMA.
He could sell the stock. He still owns the stock. I cant buy a Tesla if the owner is such a crook. That is what Tesla means to me now.
Musk is a businessman. Businessmen 'know' how to make money. Lots of it.They understand that taking risks is part of becoming rich. He'll pull through it and get rich again like Donald Trump did after He went bankrupt.
a woman will do it to you all the time
What if the NASA nixed the offer, then what?
Contribute at saveelon.com
he is not broke ...he is just smart. Didn't you see the word 'divorce'?? He is hiding it so he does not have to give it to her.
He's is far from broke! He has over half a million in liquid assets and he is extremely wealthy in investments.
pitty party what a fool self made boy
HEY AMERICA!!!! So what if he is broke? What about you and me - the average working man or woman? There are business sharks out here just waiting for anyone with assets or money. Most of these sharks are "Wall Streeters"; lawyers; accountants; bankers and even judges. I've had four businesses lost or destroyed by the sharks. Now, when you are smart enough to protect your assets, they use the IRS to break you and to finish you off! WE THE PEOPLE DESERVE BETTER!!!!!!!! God Bless America!!!!
Lamar C. Chapman III
Solo Fides (Only by Faith)
Crown-of-Life Recipient 10-24-2004
Sacredotal Ordination July 11, 1991
These big guys eating small scale businesses. They took 5% commission from me for using PayPal & eBay sucks, PayPal sucks and when our prayer will come true, going these big giant, high fees charging Companies and individual will feel pain. Sometime thing come from GOD. Better to learn now or keep get burning...
These are type of individuals who get the words mind and greed mixed i.e. "greed is a terrible thing to waste"
Let's see if the money turns up again after the divorce.
A whole lot of dollars & too little sense...