The destruction of Elon Musk’s fortune has become history.
The CEO of Tesla (TSLA), SpaceX and Twitter is worth $137 billion, according to the Bloomberg Billionaires Index, good for second place in the world’s richest list behind LVMH (LVMHF) CEO Bernard Arnault. But at its peak in November 2021, Musk’s net worth reached $340 billion.
That makes Musk the first person to lose a $200 billion fortune, Bloomberg reported last week. Much of Musk’s wealth is tied to Tesla (TSLA), whose stock is down 65% in 2022. Demand for Tesla (TSLA) has slowed as competition from electric cars from established automakers has weakened over the years. past. The company missed its target and cut production in China. Fourth-quarter sales, announced Monday, missed Wall Street estimates.
Evidence of car buyers’ waning interest in Teslas became apparent last month as the company announced a rare sale in an effort to clear inventory. Tesla has offered two rebates for customers who take delivery of the car before the end of the year, first offering a rebate of $3,750 and then increasing the rebate to $7,500 in the two weeks remaining in 2022. Investors were shocked by the discount, sending the stock down 37% in December.
Critics have long wondered whether Tesla is worth its billion-dollar valuation by early 2022. On top of its numbers, Tesla is worth more than the 12 largest car manufacturers on the planet combined, despite their small number of sales. Tesla closed the year with a valuation of $386 billion – still bigger than the automakers but smaller than the tech titans – Apple (AAPL), Microsoft, (MSFT) Google (GOOGL) and Amazon (AMZN) – which he is in. compared to a year ago. Musk’s $44 billion purchase of Twitter didn’t help Tesla’s stock or Musk’s fortune.
Musk, a Tesla shareholder, has sold $23 billion in Tesla stock since his Twitter handle became public in April. His continued tweets and erratic behavior, especially after he took over as CEO of Twitter, angered Tesla investors who wanted Musk to focus more on his larger and more profitable company. value. . Musk has defended himself against criticism, saying he hasn’t left Tesla’s big meeting since he took over Twitter. Tesla’s stock may rebound and Musk may become the world’s richest man again. But Musk’s reputation as a genius took a big hit in 2022 — almost as much damage as his wealth.