First-ever $200 billion loss for Elon Musk

First-ever $200 billion loss for Elon Musk

Based on the Bloomberg Billionaires Index, Elon Musk has a net worth of $137 billion, second on the list behind Bernard Arnault, Chairman of LVMH (LVMHF). Musk’s net worth peaked in November 2021 at $340 billion. That would make him the first person ever to lose $200 billion.

Several factors contributed to Elon Musk’s heavy loss, and there are numerous possible explanations for it. In addition to buying the social media platform for 54 billion dollars, Musk’s other companies, including Tesla, Starlink, Neuralink, etc, are draining Musk’s pockets rather than replenishing them.

Last month, after the company announced a rare sale to clear inventory, it became evident that buyers are losing interest in buying new Teslas. Initially, Tesla offered a $3,750 discount to buyers who took delivery of a vehicle before the end of 2022, and then doubling the rebate to $7,500 with two weeks left.

As Musk’s majority of wealth is tied to Tesla (TSLA), whose stock plunged 65% in 2022, inflation and the crash of the stock market have also played a major role in his declining wealth. Last year, Tesla (TSLA) suffered as competition from established automakers surged in electric vehicles. The company missed its growth targets and scaled back production in China. Deliveries for the fourth quarter missed Wall Street’s expectations, announced Monday.

Tesla’s stock plummeted 37% in December after investors reacted to rebates. Critics have been questioning whether Tesla is worth the trillion-dollar valuation it had at the start of 2022. Tesla’s peak value was greater than the combined sales of the 12 largest automakers on the planet.

With a market cap of $386 billion, Tesla is still bigger than its automaker competitors, but smaller than the tech titans Apple (AAPL), Microsoft (MSFT), Google (GOOGL), and Amazon (AMZN).

The $44 billion Twitter purchase hasn’t helped Tesla’s stock or Musk’s personal wealth, either. Musk, Tesla’s largest shareholder, has sold $23 billion worth of Tesla stock since his interest in Twitter became public.

Investors at Tesla want Musk to pay more attention to his significantly larger and more valuable company. Musk’s constant tweeting and increasingly erratic behavior, particularly after taking over as CEO at Twitter, has angered them. Since taking on Twitter, Musk hasn’t missed a major Tesla meeting, defending himself against critics.

Musk’s reputation as a genius suffered almost as much damage as his personal wealth in 2022 despite Tesla’s stock rebounding.

Not Jerome Powell took to Twitter to comment on Elon Musk’s exponential loss.

In case you’ve had a bad year because you lost a lot of money in the market, remember that Elon Musk has lost $200 billion and is still making jokes on Twitter.”

Similarly, Brianna Wu replied to Elon Musk’s tweet on the New Year by saying, “You worked hard this year and lost over $200 billion. I believe this year you will surpass yourself with even worse decisions.”.

This year, you worked hard and lost over 200 billion. I believe you will exceed yourself with even worse decisions this year.

Elon Musk replied, “Thanks for paying me $8,” referring to the blue verification badge of the user.

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