Musk Kimbal (Kimbal Musk)

Musk Kimbal (Kimbal Musk)

Biography

2021: Tesla Investment Income

Elon Musk is not the only one who has enriched himself thanks to investments in Tesla. His younger brother Kimbal Musk gave all the money to save the company during the 2008 crisis, which turned into a fabulous profit of hundreds of millions for him. This was announced in November 2021 by Forbes magazine.

Elon's younger brother, Kimbal Musk, was one of Tesla's first investors and has been on the company's board of directors since 2004. According to Forbes, the fortune of Kimbal Mask by 2021 is about $700 million. Its main assets are a 0.04% stake in Tesla, as well as options for the purchase of 172,250 Tesla shares, the value of which as of November 9, 2021 could be estimated at $170 million. He also owns shares in the popular Chipotle restaurant chain worth about $2 million, where he is also a director, and probably has a stake in SpaceX, Ilona Musk's private space company, where Kimbal also serves on the board of directors.

Kimbal, the youngest son of May and Errol Maskov, grew up in South Africa and, together with Elon, entered Queens University in Ontario, Canada. After being released in 1995, Kimbal and Elon co-founded Zip2, a software development company that Compaq acquired in 1999. After that, he invested in X.com, Elon's next startup, which eventually became part of Paypal. He joined Tesla's board of directors the same year that Elon invested $6.5 million to become the company's largest shareholder and chairman of the board of directors.

Kimbal invested in Tesla with his own money, and for many years also received valuable stock options as a reward for his services on the board of directors. At the height of the 2008 crisis, Kimbal's personal investments practically burned down, but he sold the remaining assets and invested all the money in Tesla to help the difficult company stay afloat.

The exact amount that Kimbal invested in the automaker is unknown. A company spokesman said only that he was an "early investor." According to Securities and Exchange Commission filings, Kimbal participated in the 2008 bridge financing round when investors borrowed Tesla money in exchange for a convertible note to buy shares at a reduced rate. As a result, Kimbal had 594,857 shares. It is unclear whether he still invested any of his own money in the business in subsequent years.

Kimbal Musk became rich largely due to his brother's share in the company. Since the company's IPO, in 2010, he sold Tesla shares worth almost $230 million (before taxes). This amount includes a large transaction, which he made on November 5, 2021. Kimbal sold some of his shares right before their value fell 12% due to his brother's Twitter post. Forbes estimates Kimbal's fortune at $752 million before the stock fell.^[1]

Notes