Elon Musk Gives $112 Million to Charities, Might Save $2 Billion in Taxes

Elon Musk, known as the richest person in the world, is in the news again for donating 268,000 shares of Tesla, worth about $112 million, to charities that have not been named. This donation was reported in a document filed on December 31 as part of Musk’s efforts to manage his taxes at the end of the year, according to Bloomberg.

This isn’t the first time Elon Musk has made such a donation; he did something similar in 2021.

Critics are questioning Musk’s charity, The Musk Foundation, because it seems to do very little actual charity work. Reports from Bloomberg suggest that a lot of the money it gives out ends up going back into Musk’s own businesses.

In 2024, the foundation gave away $237 million, but most of this money just went to Musk’s other companies.

The New York Times found that Musk’s foundation did not give away enough money over the past few years. Charities are supposed to give away at least 5% of their money each year, but Musk’s didn’t. This means he had to quickly give away $421 million to avoid big fines from the IRS.

Some people think Musk’s foundation barely does enough to avoid getting in trouble. Brian Mittendorf, a professor, said the foundation is not eager to spend its money on charity.

Alan Cantor Consulting has compared Musk’s foundation to a former foundation run by Donald Trump, which was closed down for misusing funds. They think Elon Musk is using his charity to save on taxes and help his businesses, rather than helping others.

They also think he’s using the foundation to keep control and power, influencing others with the promise of donations. This has led to a lot of questions about whether Musk is really interested in helping others or just helping himself.