★ This Week in #FinancialGossip: Elon Musk’s Taxes, Airline Game, and Unicorn Frappuccinos

Posted May 4, 2017 6:00 am by with 6 comments

financial gossip

This is part of our Financial Gossip series, curated by our friends at Invibed. Every week they scour the news to bring us the most interesting stories around money. These are this week’s gems :)

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Elon Musk discloses paying $593 million last year in income tax

Oh, Elon Musk, your mysteries continue to mesmerize us. Did you know he’s officially dating Amber Heard now?! Yes, Johnny Depp’s ex who pledged to donate her $7 million divorce settlement to charity.

Anyways, the Tesla CEO has now made another mind-blowing move by disclosing how much he paid in income tax last year — $593 million.

No, that’s not a typo. Just a typical billionaire pay back to the IRS. Only most billionaires aren’t so forthcoming with their tax returns (Mr. President still hasn’t willingly shared his.)

Tesla, however, did want to release this info to protect its stock price. A CEO selling his own shares often translates to “some bad sh*t is about to go down and I’m cashing out before that happens” in the eyes of investors.

By disclosing why Musk sold some of his shares — in this case, he exercised his stock options, which led to a hefty tax bill that he sold some shares to cover — Tesla is telling investors that its CEO is actually even more invested in the company than before, despite the sale.

 

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The cost of a Met Gala ticket? $30k.

The cost of a Met Gala ticket is around $30,000, but most celebs easily wear that much or more to the event.

A gown by a designer can be worth $35,610, and then there’s jewelry and… nails. Gigi Hadid’s chrome and crystal manicure from the 2016 Met Gala was valued at $2,000.

But even though A-listers can afford dropping this kind of cash to attend fundraisers, the majority don’t have to. Brands are eager to sponsor their tickets, and designers will actually pay celebs to wear their clothes.

At the end of the day though, the real winner is the Metropolitan Museum of Art, which raised $16.5 million to benefit its Costume Institute.

 

unicorn frappuccino

The Unicorn Frappuccino hits early retirement

Despite tasting terrible, the Starbucks Unicorn Frappuccino was pretty, and a lot of people we’re eager to shell out $5+ for the gram.

So many in fact that Starbucks saw global same-store sales increase by 4% in March and further growth into April.

While the Unicorn Frapp has been retired, Starbucks saw it as the perfect way to gain brand awareness and get people excited about their Frappucino Happy Hour, which runs from May 5th to May 14th. The promotion offers customers 50% off their frozen drinks.

They’re also releasing a new drink that they claim is as good or better (probably better) than the Unicorn Frapp, Midnight Mint Mocha. It was inspired by the “dark foods trend.” Charcoal ice cream, anyone?

 

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Fyre Festival facing a $100 million litigation for fraud, negligent misrepresentation, and breach of contract.

Raise of hands. Knowing what we know now, who would still pay thousands of dollars for a ticket to Fyre Festival?

“Super bro” and co-founder Billy McFarland thinks scorned attendees should give him (and Ja Rule) one more chance despite disastrous reports of the festival’s first attempt this past weekend.

Rather than request a refund (which isn’t guaranteed), ticket-holders are encouraged to exchange their tickets for 2018 VIP Passes. Who will be performing or where the “next” festival will take place is unknown — but it definitely won’t be in the Bahamas (they’ve reportedly been banned from the country).

The proposition is sketchy but hardly surprising, especially after flipping through Fyre’s pitch deck where they sought $25 million from investors. They sure know how to sell the dream or at least an illusion that includes a lot of girls in bikinis and the promise to “find untouched lands and convert them into unparalleled experiences.”

Fyre Festival currently faces a $100 million litigation for fraud, negligent misrepresentation, and breach of contract.

 

volunteer as tribute

The Airlines get forced to up their game

After the disturbing video of a passenger being ripped from his seat on an overbooked United flight, people had a lot of questions. Including Rep. Duncan Hunter (R-Calif.) who at a hearing this Tuesday asked airlines, “Why do you hate the American people?”

The overall tone of the hearing was ‘get your sh*t together, or the government will be forced to get involved.’

Airlines have begun shifting their policies, like not overbooking flights, and increasing the amount of money that can be shelled out to passengers. The previous number was around $1,000 but United just bumped that payout to $10,000.

Delta also bumped their cap to $9,950. The goal is to make selling back your reservation so appealing to passengers, force won’t be necessary.

Elsewhere in blogger gossip…

  • Erin’s new book “Broke Millennial” just dropped!
  • And Vic from DadIsCheap.com welcomed home a beautiful baby boy named Logan :)

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For more blog gossip click here (managed by J$), and for more financial gossip click here.

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[All gifs by Giphy]

Dani Pascarella, CFP® left her job on Wall Street to close the financial gap and create a new model within the personal finance industry. Along with co-founder Korrie Martinez, Dani built Invibed, a fintech company that provides financial education and early stage Wealth Coaching for young professionals. Sign up for their weekly newsletter at subscribe.invibed.com!

6 responses to ★ This Week in #FinancialGossip: Elon Musk’s Taxes, Airline Game, and Unicorn Frappuccinos

  1. Mrs. Groovy May 4th, 2017 at 8:09 am

    You had me with unicorn!
    #FyreFestival kept many people awake Friday evening, including Mr. Groovy and me. We’re usually oblivious to the latest cultural gaffe, but Twitter was like a car wreck we couldn’t take our eyes off of. Yes, I feel badly for those who got burned (pun intended) but I still found watching the venemous tweets quite amusing. especially the ones with photos of the FEMA tents, or the Concierge booth.

    Reply

    • J. Money May 4th, 2017 at 11:38 am

      I’m so lame I didn’t know about the festival OR the Starbucks unicorn!

      Reply

      • Korrie May 4th, 2017 at 11:45 am

        That’s what we’re here for J$!!

        Reply

    • Korrie May 4th, 2017 at 11:42 am

      I know, Mrs. Groovy! It was so bad you just couldn’t look away.

      Reply

  2. NatPhorU May 4th, 2017 at 12:51 pm

    As an acolyte of the Invisible Pink Unicorn (blessed be her holy hooves), I am offended on behalf of my goddess for this blatant misappropriation of both her name and likeness. I would say I’m boycotting Starbucks except that coffee is not even the slightest bit appetizing, so I am already not a customer.

    Reply

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