Guinness says Elon Musk broke the world record for ‘worst loss of fortune’
This is a record loss, according to Guinness, which said in a blog post That the previous record was set during the technology stock market crash of 2000, when Japanese billionaire Masayoshi Son, CEO of SoftBank, lost $58.6 billion. (That would be about $100 billion today, accounting for inflation.)
Musk’s loss comes amidst its fallout $44 billion to buy Twitterwhere he has layoffs of thousands of workers While delving into thorny political debates. Tesla investorsMusk, the electric car maker he runs, has expressed concerns that he’s spending too much time trying to rectify the situation on Twitter that plagues Tesla. Tesla stock has lost 39 percent of its value since December 1, according Bloomberg News.
Measuring the net worth of individuals at a particular point in time is a tricky business. Entrepreneurs whose net worth is tied to the value of a particular stock can experience significant fluctuations within short time frames due to external factors such as market conditions or government policy. Musk in the past I lost large sums of money Before recovering and re-growing his net worth.
But this crisis is part of Musk’s making. He sold large amounts of his Tesla stock to buy Twitter at a higher price, just as the automaker is suffering Increased competition in the electric vehicle market, deficiency of chips and raw materials, and production delays Deadlines are missed. Meanwhile, Musk said he would Sleeping in the Twitter office in San Francisco “Until the foundation is reformed.”
Musk’s frustrations festered Shareholder lawsuits against Tesla, including a case in 2018 In the state of Delaware, which claims a The wage package he received was exaggerated It alleges that Tesla’s board members did not act independently in approving it.
to me Bloomberg NewsMusk’s aerospace manufacturing company, SpaceX, accounts for more than 37 percent of his net worth, and publicly traded shares in Tesla account for about 33 percent. The rest consists of posts on Twitter and boring companycreated by Musk’s company to build tunnels with the aim of easing traffic in cities.
The recent decline in Musk’s net worth is largely due to Tesla stock price drop. Musk has repeatedly attributed this to macroeconomic trends, including the Federal Reserve historically Interest rates will rise in 2022.
In an exchange last month with Twitter and Tesla investor Ross Gerber about Tesla valueMusk tweeted, “As interest rates on the savings bank account, which are secured, begin to approximate stock market returns, which are *unsecured*, people will increasingly move their money from stocks to cash, causing stocks to drop.”
However, Musk appeared to tacitly acknowledge investor concerns that his investment in Twitter detracted from the value of his other ventures. “I will make sure Tesla shareholders benefit from Twitter in the long run,” Musk wrote in a December tweet. He did not provide details.
Musk was overtaken as the world’s richest person by Bernard Arnault, CEO and chairman of French retail giant LVMH. Arnault’s net worth, as of Thursday, is $182 billionAccording to the Bloomberg Billionaires Index. to me ForbesArno and his family have a net worth of $204 billion, while Musk’s net worth is $146.5 billion.
Personal declines in wealth aren’t unusual at the highest levels of business, particularly in tech — though the scale of Musk’s loss is staggering. As Guinness notes, the man who came close to losing Musk’s personal fortune, Son, would see his net worth change “by as much as $5 billion a day” during the internet crash of 2000. However, today, Son is still nowhere near the top of the lists. The richest people in the world: Forbes ranked him 74th on the billionaires list for 2022, and he is 139th place on the Bloomberg Billionaires Index.
But Musk’s fortunes could soar. As Guinness notes, “Despite the crash in prosperity, Tesla remains the most valuable auto company in the world, with a market capitalization of more than $100 billion greater than its closest competitor, Toyota.”
in Note to investors In December, Goldman Sachs analyst Mark Delaney wrote that he still believed in the “great value” of the “Tesla brand,” though he acknowledged it had “become more polarizing” since Musk bought Twitter. He suggested the company should have a “consumer focus related to Tesla’s return to these core sustainability and technology attributes” to recover value. In other words: Tweet less please.