Did Elon Musk build his fortune on a family heirloom? – Release

Did Elon Musk build his fortune on a family heirloom?  - Release


The origins of the wealth of Tesla’s boss, SpaceX, and possibly Twitter soon spark fantasies and rumors.
Question asked by Annick on April 27, 2022,

Elon Musk came as a surprise on Monday, April 25, winning the agreement of the Twitter board for the acquisition, at $ 54.20 per share, of the social network, thus valuing the company at about $ 44 billion. If anyone doubts that the business will be completed, this extraordinary raid on one of the most important social networks in the world gives an idea of ​​the extent of wealth (and network) of this indigenous billionaire. “South Africa. In just two years, from 2020 to 2022, Elon Musk’s fortune increased from $ 26.4 billion to $ 219 billion, according to Forbes, which ranks him at the top of the richest people on the planet. An asset consisting essentially of shares in two of its companies: SpaceX and Tesla. Another distinction given by the American financial magazine to Musk, a self-made scoreof 8/10, considering that he built his own property.

On social media, however, Internet users regularly spread rumors that the billionaire would in fact have inherited his fortune from his father, the owner of an emerald (or diamond) mine. depending on the version). His listing on Wikipedia thus indicates that “is the son of Erol Musk, a wealthy South African engineer and Anglo-South African real estate engineer who co-owned an emerald mine in Zambia, and Maye Haldeman, a Canadian nutritionist and modelThe online encyclopedia is based on a 2018 article from Business Insider.His father, Errol Musk, had an occasional attitude toward the family’s significant wealth, including the stones from Zambia’s emerald mine, of which Errol owned half a share.“, We can read.

The reputation of an emerald mine

The article then recounts an episode in which young Elon Musk, about 16 years old, decided to sell two emeralds to jeweler Tiffany on one of his father’s many trips. But this anecdote could not be confirmed by the journalist, who explains that he joined Elon Musk on this issue without success. And to point out that “father and son have a complicated storyIn another article in the South African edition of the news website, Errol Musk recounted how he had co-owned an emerald mine in Zambia bought by Italians during a makeshift stop in Djibouti. in particular that he was no longer receiving revenue from this mine and that his involvement in this company “.did not help Elon succeed in the United StatesOn Twitter, Elon Musk was annoyed several times by this rumor. “I do not have an emerald mine and I have not received free money from anyone, either as an inheritance or for another.had responded, for example, on 4 January 2020.

However, the 50-year-old businessman comes from a very well-established white South African family. “The Musk tribe has been present in the country for about two centuries. entered in the first telephone directory of PretoriaWe learn in the reference biography written by journalist Ashlee Vance, in 2015 (Tesla, Paypal, SpaceX: the businessman who will change the world, ed. Editions Eyrolles). It should be noted that in this work no reference is made to the possible purchase of the mine, nor to its profits.

While Elon Musk is still a child, his father runs a lucrative engineering business, allowing the family to settle down. “In one of the most majestic houses in Pretoria”. These comfortable conditions mainly allowed timely access to computers and travel. At 12, says the biographer, “a South African professional newspaper, Computer and Office Technology, published the source code of a video game he created. It was a space game called Blaster and inspired by science fiction. […] His article earned him $ 500 and gave him a first look at his character“.

A donation of $ 28,000

At 17, the young man left for Canada, where he had family ties. “MIn disagreement, his father cut off his food“, according Le Figaro. In a tweet published in 2021, responding to a rumor about the origins of his wealth in connection with apartheid, Elon Musk reports that he arrived with 2,500 Canadian dollars in his pocket. “I paid for my studies on my own and ended up in debt of about $ 100,000”he adds.

After two internships in Silicon Valley, Elon Musk and his brother Kimbal founded the Global Link Information Network in 1995, a start-up that was later renamed Zip2. “The Musk brothers were hoping to convince restaurants, clothing stores, hairdressers, etc., that it was time to make it known to Internet users. Zip2 would create a business directory linked to geographic maps “, describes Ashlee Vance. Starting a business in a “Office six by nine meters”, in Palo Alto, California, is made for little money, according to Vance’s account. However, contrary to what the boss of Space X on Twitter claims, their father helped launch the case (certainly more modest than the rumors suggest). “Errol Musk gave his sons $ 28,000 to help them, but they found themselves almost fruitless after renting their facilities and buying software and equipment.», We can read in the CV.

The two brothers raised their bets and the successful company was bought in 1999 by Compaq Computer for $ 307 million. With this sale, Elon Musk pockets $ 22 million, thus reaching 27, the rank of multimillionaire. Along the way, he’s still investing $ 12 million in founding X. com, a new e-banking company – a revolutionary idea for its time. In 2000, X.com acquired its competitor, Confinity, the founder of the online payment service PayPal. In July 2002, X. com, which has since been renamed PayPal, was acquired by eBay for $ 1.5 billion. Elon Musk, who at the same time decided to launch his own space company, SpaceX, “earned about $ 250 million or $ 180 million after taxes – enough to make his wildest dreams come trueconcludes Ashley Vance.



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