Musk donated around $1.95 billion in Tesla shares last year

Analysts have said that Musk might benefit from gifting Tesla stock if he donated it to charity since shares donated to charities do not have to pay capital gains tax.

Tesla CEO Elon Musk and his security detail depart the company’s local office in Washington, U.S. January 27, 2023. REUTERS/Jonathan Ernst

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Tesla chief executive Elon Musk donated shares worth $1.95 billion in the world’s most valuable automaker to charity last year, a filing with the U.S. Securities and Exchange Commission (SEC) showed on Tuesday.

Musk donated about 11.6 million shares between August and December last year, according to the filing, which did not say which organization or organizations were the recipients.

The world’s second-richest person now owns around 13% of Tesla.

Tesla did not immediately respond to an email seeking details on which charity or charities got the donations.

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Musk donated about $5.74 billion in 2021.

Analysts have said that Musk might benefit from gifting Tesla stock if he donated it to charity, since shares donated to charities do not have to pay capital gains tax, as they would if they were sold.

Musk signed the Giving Pledge in 2012, a commitment by some billionaires to give at least half their wealth to philanthropy in their lifetime or upon their death.

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In 2001, he set up the Musk Foundation, offering grants for the “development of safe artificial intelligence to benefit humanity” among other causes, according to its website.