Elon Musk Becomes First Person to Lose $200 Billion in Wealth
Nearly two years after achieving a record-breaking net worth of over $200 billion, Elon Musk has now set another unprecedented milestone: becoming the first person to lose it. Musk, the CEO of Tesla and Twitter, saw his fortune peak at $340 billion in November 2021. However, by the end of 2022, that number had plunged to $137 billion, largely due to the drop in Tesla’s stock value. According to Bloomberg, Tesla shares lost 65% of their value in 2022, significantly impacting Musk’s wealth.
From the World’s Richest to Losing Billions
In 2022, Musk topped Forbes’ annual billionaires list, surpassing Jeff Bezos, who had previously held the title of the world’s richest person for four consecutive years. Musk became the second person in history to reach a net worth of $200 billion, following Bezos. Two years earlier, Musk was ranked 31st on the Forbes list, with Tesla stock trading at $72.24 per share.
Musk’s fortunes took a sharp turn in late 2022 when Bernard Arnault, the French fashion mogul, overtook him as the world’s wealthiest person. Arnault’s rise coincided with the dramatic fall in Tesla’s stock price and Musk’s decision to sell significant portions of his holdings to finance his $44 billion acquisition of Twitter. This deal, which has drawn widespread attention, appears to have diminished Musk’s overall financial standing.
Musk’s Current Assets: SpaceX vs. Tesla
According to Bloomberg, Musk’s stake in SpaceX is now his most valuable asset. His $44.8 billion ownership in the space exploration company exceeds his remaining $44 billion worth of Tesla stock. This shift highlights how Musk’s priorities may be changing, as he continues to divide his attention between his electric vehicle business and his newer social media venture.
Musk’s acquisition of Twitter has come with significant controversy. Since taking over the platform, he has made several decisions that have raised eyebrows and sparked public criticism. Among the most controversial was his approach to free speech, which allowed previously banned users, including neo-Nazis, back on the platform. His management style at Twitter has also led to hundreds of layoffs, the suspension of journalists who cover his companies, and the termination of janitors at Twitter’s San Francisco headquarters. These actions have unsettled Tesla investors, advertisers, and civil rights groups alike.
Tesla’s Recent Struggles and the Future of Musk’s Fortune
Tesla, once Musk’s most significant financial asset, has faced recent challenges, including steep discounts on some of its vehicle models. In an attempt to boost sales, the company offered $7,500 discounts to American buyers on select models in December 2022. Additionally, production at Tesla’s Shanghai factory is reportedly being reduced, reflecting the broader challenges the company is experiencing.
Despite these setbacks, Musk has remained largely unconcerned about Tesla’s stock decline. Instead, he has shifted the blame to the Federal Reserve and its decision to raise interest rates. In a Twitter post, Musk stated, “Tesla is executing better than ever! We don’t control the Federal Reserve. That is the real problem here.” Musk continues to assert that Tesla’s performance remains strong, despite the financial headwinds.
Although Tesla’s stock performance has impacted Musk’s wealth, his portfolio’s diversification into SpaceX may be a sign that the billionaire’s financial future could be tied more closely to space exploration rather than electric vehicles.
