Elon Musk, one of the world’s wealthiest individuals, may disagree with US Senator Bernie Sanders on paying taxes, but he is not afraid to give generously. Musk reacted to a tweet from researcher Eli David in October 2021, who tweeted a screengrab of a news item with the headline “2 percent of Elon Musk’s fortune could eliminate global hunger, says the director of UN Food Scarcity Organization.”
“If WFP (Global Food Programme) can articulate on this Twitter thread precisely how $6 billion would cure world hunger, I will sell Tesla shares right now and do it,” the SpaceX founder responded. Musk seems to have kept his promise. According to Forbes, the 50-year-old industrialist revealed on Monday that in November he gave more than $5 billion worth of Tesla stock to an unnamed charity. This transaction took place only weeks after he committed to selling 10% of his stock in the firm.
According to Forbes, Musk transferred the 5,044,000 Tesla shares—worth more than $5.4 billion at the time—over the course of ten days in November, according to a Securities and Exchange Commission filing. The transfer was defined as a “bona fide donation” to charity in the filing, although it did not specify which organization got the shares. WFP Executive Director David Beasley described a strategy on Twitter and tagged Musk shortly after Musk’s post asking the WFP to explain the use of funding to eliminate global hunger.
“This hunger crisis is urgent, unprecedented, and preventable,” Beasley stated in one of the tweets. You asked for a transparent strategy and open books, Elon Musk. It’s here. We’re eager to speak with you, as well as anybody else who is committed to saving lives. To avoid hunger in 2022, the request is $6.6 billion.”
However, it should be emphasized that Musk’s massive stock transfer occurred in order to offset a multibillion-dollar tax penalty that he would have suffered if he had opted to execute Tesla stock options worth $23 billion that are slated to expire in August 2022, according to Forbes. Musk polled his followers in November, asking whether he should sell 10% of his Tesla shares to offset claims of tax evasion. Yes was voted by over 58 percent of the 3.5 million votes. According to Forbes, Musk would need to sell 17 million shares, valued at about $15 billion as of Monday’s closing, to meet this objective, despite having previously sold over 9 million shares in November.
Tesla, led by Elon Musk, is poised to overtake the competition as the world’s leading electric vehicle manufacturer with only one more move
When Mr. Elon Musk was confronted with the actual world, he maintained his genuine essence. The guy never tried to be or become someone else for the sake of money or worldwide recognition, and he never changed for the stage. The SEC, Tesla’s board of directors, lawmakers, activists, investors, consumers, and other government agencies… Nobody could get this businessman to flinch. He is the person he is. Most significantly, he overcame all of the challenges that the business world threw at him.
No, this does not imply that Elon Musk is a saint or a savior. He’s a successful entrepreneur. He got into a struggle with a highly conservative industry and managed to get to the top by throwing all he had at it. Most of us will never be able to do this. It takes self-sacrifice, unwavering dedication, and a sharp sense of humor. Nobody can say no to laughing in the face of danger or defeat, after all.
While Elon Musk is the most well-known Tesla figure, we should also recognize others who assisted him in his undertakings, including the company’s original two co-founders. What this American EV manufacturer has accomplished is impossible to do on one’s own or with only a few partners and personnel. Everyone participates in the success of this now-global brand, from consumers and investors to adversaries and taxpayers. How this sharing is carried out… That’s a conversation for another time.
It’s difficult to explain this man’s effect on the car industry in such a short amount of time. We can only fathom what he’ll be able to do with SpaceX. At the very least, he has the potential to expand the scope of space exploration and solidify America’s worldwide leadership in this soon-to-be critical area. Let’s simply accept that he’s accomplished a lot and that we should be thankful he’s still alive. Nobody was harmed by a few memes and bitcoin tweets, and no one will be harmed by them in the future.
Tesla’s major marketing campaign
You may be wondering why this article on Tesla’s indisputable success began with praise for Elon Musk and the people who believed in him. It was done for a very simple reason: I read and witnessed how the media handled this guy before I became a journalist. He was teased, belittled, and accused of odd things, and he was constantly the center of attention for something strange. The general public seldom learned anything beneficial about Tesla’s CEO.
His business-minded intellect, on the other hand, never let him down. Tesla and its all-electric vehicles were mocked by traditional manufacturers. They began purchasing carbon credits from the same firm a few years later. Everyone now wants to beat or outperform Tesla. Indeed, the tables have turned.
While Ford’s F-series trucks may give it a chance to compete with Musk’s business, Europeans are falling behind. That might explain why Mercedes-Benz and BMW are already experimenting with hydrogen. They are afraid of what the EV war for resources would imply for their existence, not because they enjoy it. Tesla shines brightly once again since it has already determined what it wants to be.
We have learned that the electric vehicle manufacturer made a covert nickel agreement with a Brazilian mining business. This is a critical point. The demand for all-electric vehicles has exploded throughout the world, and Tesla wants to please its consumers everywhere. The likelihood of receiving additional orders increases as the number of delivery increases. Furthermore, Musk and his team were well aware that Russia, the world’s greatest nickel producer, could not be trusted. Natural gas has been turned into a weapon. Nothing will stop them from using the same techniques in the future on something comparable.
We also heard this month that Tesla is amassing cash “at a higher rate than its physical capacity to develop.” Remember when Tesla’s cashflow issues were all that was in the news?
For the time being, we know a few things: Musk is a terrific businessman and a strong leader, Tesla is doing well and fast expanding, its rivals are failing, and the company wants to accomplish much more than it can today. “Master Plan Part 3” is the third installment of the master plan.
The clincher
There’s no use in guessing what Elon Musk is thinking or planning right now. “Scaling to extreme magnitude” sounds exciting and dangerous, but let’s stick to the facts and attempt to predict the next crucial step.
Tesla’s CEO may have said on Twitter that he is ready to take the firm to the next level, but here are the factors that will help it achieve so. It’s not a publicity stunt, a new automobile, or a new factory. This isn’t the most crucial thing.
Morgan Stanley’s auto and space research is led by Adam Jonas. According to his briefing on Tesla’s ambitions, we could expect a huge triumph for the electric vehicle era. Musk’s business will easily become the number one vehicle maker if this is done correctly. We’re on the same page if you’re thinking about the freshly sought stock split right now. Things are starting to fall into place, aren’t they?
According to Jonas, the “Master Plan Part 3” would feature a significant shift in the EV supply chain. “Those with the capacity to acquire the goods in the biggest volume and be assured supply,” he claims, with “unlimited cash” being a “critical factor.” To put it another way, if a company wants to prosper, it must be able to get raw materials quickly, readily, and at a reasonable cost. Tesla matches this criterion admirably and seems to be as prepared as ever to capture this opportunity.
You may recall Ford’s escapades in South America if you’ve been around longer than I have. The firm wanted to protect its own resources, so it put a lot of money into creating whole communities around mines or woods. Fordlandia was just a taste of what’s to come.
Blue Oval City arose, pushing for the production of electric vehicles without delays and at a low cost. Ford will benefit from the $11.4 billion investment as it pursues its goal of becoming an electric vehicle manufacturer. The company’s CEO even said that “we don’t have much time” and that the problem must be resolved as quickly as possible. And he was absolutely correct!
With the Brazilian agreement in place and lithium prices increasing, Tesla is now focused on securing its own battery raw materials, which is critical to long-term success.
Complete the task.
Elon Musk is on pace to become the person who signs the contract of the decade, with the finances available and a key partner who may be prepared to let go of its operations. Albemarle, the world’s biggest lithium producer, has already begun collaborating with Tesla. It will very certainly be urged to give in to the demands of the American automakers because it makes the greatest sense at this time. Why not team up with your most important client? You have nothing to lose! A deal like this would be unsurprising given how the American company operates these days. I’d even go so far as to suggest that it’s almost certainly already in the works.
Any EV producer with a reliable supply chain and low-cost raw materials will become an almost immediate champion. With mining and processing units on every continent except Africa, including Albemarle within Tesla’s business group is a no-brainer.
Albemarle now refuses to provide Tesla any more of its goods. It’s in the best interests of the company, like any other firm, to have a diverse consumer base. Musk’s firm, on the other hand, is working hard to assure its own success, so the lithium company might soon be a part of the worldwide change in personal transportation.
If Tesla succeeds in this, it will be invincible. It will not only provide lower-cost automobiles after getting far lower-cost raw materials for batteries, but it will also decide who gets the leftovers. It will be fascinating to see how the American automaker, as well as the whole industry, evolves.
However, you should keep in mind that this is unconfirmed. This deal may go a place, or it may not even reach the stage of discussion. If this scenario plays out as planned, be prepared for a war that will make autonomous driving and artificial intelligence the most desirable features for carmakers. Tesla has already collected enough data from its consumers, and it continues to do so every day. Elon Musk will almost certainly get his long-awaited crown, which will look great on Tesla. He was never one for bravado in the first place.