Who owns PayPal now after Elon Musk

How Tesla boss Elon Musk built up his billion dollar fortune - and what he spends it on

With SpaceX and Tesla, Elon Musk is the face of some high-profile companies. His current net worth is around $ 20 billion. Where does all this money come from and then what happens to it? Here we explain how Elon Musk makes his billions and what he spends them on.

Musk grew up in South Africa and taught himself to code. When he was just twelve, Musk was selling the source code for his first video game for $ 500. Later, at the age of 24, Elon and his brother Kimbal founded Zip2 with $ 28,000 from their father's fortune. Zip2 was a kind of searchable business directory, comparable to an online version of the Yellow Pages with an accompanying map.

Four years later, the brothers sold Zip2 for $ 307 million to create an online banking service, X.com. Through a company merger, X.com became Paypal, with Musk as the majority shareholder. When eBay bought PayPal for $ 1.5 billion in 2002, Musk made $ 180 million from the sale.

Musk and other PayPal managers like Peter Thiel and Reif Hoffman have come to be known as the PayPal mafia. They received their profits from the PayPal sale and invested them in various startups and funds. Her investments and creations have included Youtube, Linkedin, Uber and countless other platforms that are now some of the major players in Silicon Valley.

Tesla and SpaceX are currently Musk's main pillars

After selling PayPal, Elon Musk founded the space company SpaceX. According to SpaceX, its mission is "to enable humans to become a space-ready civilization and multi-planet species by building a self-sustaining city on Mars". The privately held company is valued at $ 33.3 billion ($ 29 billion), according to CNBC. Musk himself is the single most important shareholder of SpaceX with a stake of 54 percent.

While SpaceX is reaching for the stars, Musk is best known for a company that is at least a little more down to earth. The automobile manufacturer and energy company Tesla was founded in 2003. It went public in 2010 and exceeded expectations with a market capitalization of $ 2.2 billion. Just two years later, Musk made it onto the list of the richest people in the world of the US business magazine "Forbes" for the first time with an estimated net worth of US $ 2 billion.

While Tesla Musk has been a huge help in building his fortune, the company's future remains unclear. In 2018, Musk had to pay a fine of $ 20 million and step down as CEO for three years because he announced on Twitter that he wanted to take Tesla off the stock exchange, and an investigation by the American company led to it Exchange supervision was initiated.

Still, the company's current value is $ 32.8 billion. Musk has a legal salary of $ 56,000 but never cashes the paycheck. Instead, he receives his entire remuneration from bonuses, the amount of which depends on the success of the company.

Musk locates its products in space, on earth and below the surface of the earth

And as if space and all the roads in the world weren't enough, another Musk company takes a look below the surface of the earth. Musk founded The Boring Company, an infrastructure and tunneling company dedicated to building an underground tunnel system for fully electric passenger transportation. Musk was inspired by the notorious traffic situation in Los Angeles to start this company.

The Boring Company's first profitable tunnel in Las Vegas could be completed by the end of 2019, according to Musk. This and other high-profile contracts, such as those at O’Hare Airport in Chicago, are valued at up to 16 billion US dollars (14.04 billion euros). With all these ambitious projects, Musk has amassed an incredible fortune.

Now we show what Elon Musk likes to spend his billions on. Musk currently owns $ 70 million in real estate. His lots include several properties in Bel Air, Los Angeles. His first purchase there, a $ 17 million mansion, comes with a two-story library, home theater, gym, and wine cellar stocked with a thousand bottles.

Elon Musk makes a lot of money through his businesses, but he also spends a lot on those businesses

And of course the Tesla co-founder has a soft spot for cars. His collection includes the $ 920,000 Lotus Esprit submarine car used in a James Bond movie, a Ford Model T, and a Jaguar E-Type Series 1 Roadster. As you can imagine, Musk is quite a workaholic, so he hardly ever spends his money on vacations. In a 2015 interview, Musk claimed he'd only taken a week's vacation twice since he founded SpaceX in 2002. Instead, much of Musk's money goes straight back to his businesses.

Read also: After months of terrible news: 5 reasons why Tesla could soon go uphill

The New York Times reported that 90 percent of the $ 112 million raised by The Boring Company came from Elon Musk. And in 2018, Musk bought more than $ 35 million worth of shares in Tesla.

He's also signed the Giving Pledge, created by Warren Buffett and Bill and Melinda Gates, swearing to donate the majority of your fortune over the course of his life. Musk has already donated to a number of important causes, including $ 10 million to the Future of Life Institute to help regulate artificial intelligence.

Elon Musk has become a controversial figure, but his rise to become a rocket scientist and billionaire remains impressive. And if one day humanity lives on Mars, we might have Musk to thank for that.

This text was translated from English by Alexandra Hilpert.