Tesla is often considered a pioneer in the manufacturing of EVs, cars that weren’t very popular at the time of the company’s inception. The automaker soon proved its worth, producing vehicles that are both incredibly quick and efficient. The Tesla Model S can drive for 402 miles on a single charge, eliminating a lot of range anxiety.
Most people associate Tesla with Elon Musk, the often controversial face of the company. While Elon is the CEO, Investopedia shows that several other people also own shares of his highly successful EV empire. How much of Tesla does Elon Musk actually own?
How Tesla began
Elon Musk wasn’t one of the founding fathers of Tesla, but contributed the most money toward the company’s initial development. After his contribution of $6.5 million, Musk signed on as CEO and joined the board of directors. While he reportedly wasn’t interested in the company’s daily operations, he really enjoyed his role in designing the 2008 Tesla Roadster.
The Roadster was the first car manufactured by Tesla, an all-electric sedan with a 244-mile battery range. It was faster than any other EV at the time, able to reach 60 mph in as little as 3.7 seconds. It was discontinued in 2012, but work is underway for a 2022 Tesla Roadster.
The Tesla Roadster likely sold few units because of its high retail price, over $100,000. This was part of Tesla’s plan to save money on battery technology. Even today, Musk takes pride in Tesla’s impact on reducing carbon emissions.
Ultimately, Musk’s goal is to create a battery that can be continuously recycled throughout an infinite number of EVs. Independent reported that Tesla is also creating a new battery design capable of 500% more power. Musk showed confidence that it will be so cheap to produce that a new Tesla vehicle could retail for just $25,000.
Who else has a stake in Tesla?
Observer reports that Elon Musk owns 20% of Tesla, triple the amount of many other institutional shareholders. The next organization down the ladder is Susquehanna Securities, which supplies brokerage services and contributes to research technology. It owns 6.5% of Tesla, which translates to nearly 61 million shares.
Capital World Investors, which aids Tesla with asset management, owns 5.6% of the company with over 52 million shares. Besides these top three institutional shareholders, three individual shareholders also pwn substantial stock in the company.
The most notable is Kimbal Musk, Elon’s brother and another member of Tesla’s board of directors. He currently owns 629,740 shares with Tesla.
Both Zachary Kirkhorn and Jerome M. Guillen own 0.01% of Tesla. Kirkhorn is currently Tesla’s chief financial officer, but he has filled several smaller roles with the company throughout the years. Guillen is Tesla’s former president of Automotive and was also at the helm of Tesla’s truck program. As of March 2021, CNBC reports that Guillen is now the president of Heavy Trucking.
Elon Musk’s stake in the company
Over 193 million Tesla shares belong to Elon Musk, bringing his net worth to $105 billion. Tesla’s board of directors also approved a compensation package for Musk, which would potentially award several million dollars more.
However, this monetary increase is dependent on Tesla’s success. Under the conditions of the package, Tesla’s stock would have to increase by $50 billion every 10 months.
It might seem like a lofty goal, but Tesla has proven itself to be an incredibly lucrative business venture. It’s currently worth $700 billion on the stock market, with shares costing around $600 apiece. Its vehicles are also popular, with the Tesla Model 3 currently leading EV sales in the United States.