The destruction of Elon Musk’s wealth has become historic.
The CEO of Tesla
(TSLA)SpaceX and Twitter is worth $137 billion, according to the Bloomberg Billionaires Indexgood enough for second place on the list of the world’s richest behind LVMH
(LVMHF) President Bernardo Arnault. But at his peak in November 2021, Musk’s net worth was $340 billion.
That makes Musk the first person to lose $200 billion in wealth, Bloomberg reported last week.
Most of Musk’s wealth is tied up with Tesla
(TSLA)whose shares fell 65% in 2022. Tesla Lawsuit
(TSLA)It weakened as competition in EVs from established automakers increased last year. The company missed its growth targets and reduced production in China. Your fourth quarter deliveries, announced on mondaymissed Wall Street estimates.
Evidence of waning interest from car buyers in Teslas became apparent last month after the company announced an unusual sale in a bid to clear inventory. Tesla offered two rebates for buyers who receive a vehicle before the end of the year, initially offering a $3,750 discount and then doubling the rebate to $7,500 with two weeks remaining in 2022.
Investors were rocked by the redemptions, sending shares tumbling 37% in December.
Critics have long questioned whether Tesla was ever worth the trillion-dollar valuation it was at in early 2022. At its peak, Tesla was worth more than the 12 largest automakers on the planet combined, despite having a fraction of your sales. Tesla ended the year with a value of $386 billion, still much bigger than its automaker rivals but much smaller than tech titans Apple.
(GOOGLE) and Amazon
(AMZN) – with which it was compared a year ago.
CNN’s Donie O’Sullivan explains why Musk banned his Twitter account
Musk’s $44 billion purchase of Twitter hasn’t helped Tesla stock or Musk’s personal wealth either. Musk, Tesla’s largest shareholder, has sold $23 billion worth of Tesla shares since his interest in Twitter was made public in April.
His constant tweeting and increasingly erratic behavior, particularly after taking over as Twitter CEO, has angered Tesla investors who want Musk to pay more attention to their significantly larger and more valuable company. Musk has defended himself against critics, saying he hasn’t missed a major Tesla meeting since he took over Twitter.
Tesla’s stock may recover and Musk could once again become the richest person in the world. But Musk’s reputation as a genius was severely damaged in 2022, almost as much as his personal wealth.
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