According to the Bloomberg Billionaires Index, Elon Musk’s current net worth of $137 billion is enough to put him second on the list of the world’s richest people, behind LVMH (LVMHF) Chairman Bernard Arnault. However, at its peak in November 2021, Musk’s net worth was his $340 billion. Musk is the first person to lose a fortune of $200 billion.
There are several reasons for this heavy loss suffered by Elon Musk, and it presents many opportunities. His first $54 billion purchase of social media platforms hasn’t helped his fortune much. His other companies, including Tesla, Starlink, and Neuralink, are emptying Musk’s pockets rather than filling them. Buyers quickly lost interest in buying a new Tesla vehicle, which was evident last month when the company announced a rare sale to clear its inventory. Tesla has offered two rebates to buyers who deliver the vehicle before the end of the year. First he’s a $3,750 rebate, then he’s two weeks into 2022 and he’s a $7,500 rebate.
Inflation and the stock market crash will see Musk’s fortune dwindle as most of his fortune is tied to Tesla (TSLA), whose stock has plummeted by 65% in 2022. one main reason. Demand for Tesla (TSLA) Weakens Competition for electric vehicles from incumbent automakers has intensified significantly over the past year. The company fell short of its growth targets and cut production in China. Fourth-quarter shipments announced Monday fell short of Wall Street estimates.
Investors were upset by the rebate, and the stock fell 37% in December. Pundits have long questioned whether Tesla is worth his $1 trillion valuation in early 2022. At its peak, Tesla was worth more than the world’s 12 largest automakers combined, but only a fraction of its sales.
Tesla ended the year at his $386 billion valuation. It’s still much bigger than its automaker rivals, but much smaller than tech giants Apple (AAPL), Microsoft (MSFT), Google (GOOGL) and Amazon (AMZN). Compared to 1 year ago. As before, Twitter’s $44 billion acquisition did nothing for Tesla stock or Musk’s personal fortune. Musk, Tesla’s largest shareholder, has sold $23 billion worth of Tesla stock since his interest in Twitter became known in April.
His constant tweeting and increasingly erratic behavior angered Tesla investors, especially after he became his CEO of Twitter. Tesla investors want Musk to pay more attention to his very large and valuable company. Musk has defended himself against critics by saying he hasn’t missed an important Tesla meeting since taking over Twitter.
Tesla stock has rebounded, and Musk could become the world’s richest man again. But Musk’s reputation as a genius has taken a serious hit in 2022.
A Twitter user of his named Not Jerome Powell took to the platform to comment on Elon Musk’s exponential loss.
“If you’re having a bad year because you lost a lot of money in the market, remember Elon Musk lost $200 billion and is still joking on Twitter.”
Another of her Twitter users with a blue checkmark, Brianna Wu, tweeted Elon Musk’s New Year’s tweet, saying, “You worked hard this year and lost over $200 billion. This year was even worse. I think I will outdo myself.”
Elon Musk replied, “Thank you for paying $8,” referring to the user’s blue verification badge.