Elon Musk is the man who wiped out billions of dollars. According to the Bloomberg Billionaires Index, Elon Musk, CEO of Tesla (TSLA), SpaceX, and Twitter, is worth $137 billion, placing him only behind LVMH (LVMHF) Chairman Bernard Arnault on the list of the world’s richest people.
However, in November of 2021, Musk’s wealth reached $340 billion. According to a report by Bloomberg from last week, this makes Musk the first individual in history to lose $200 billion in fortune.
As of 2022, Tesla (TSLA) shares have dropped by 65 percent, tying up a large portion of Musk’s fortune. Competition in the electric car market from established manufacturers increased last year, reducing demand for Tesla (TSLA)s.
The firm was unable to meet its expansion ambitions, so it cut back on manufacturing in China. The company said Monday that its deliveries for the fourth quarter came in below expectations on Wall Street.
Last month, Tesla launched an unusual deal to try to clear out inventory, which was seen as evidence of waning enthusiasm for the brand’s automobiles among consumers.
If you took possession of your Tesla before the end of the year, you were eligible for two reimbursements from the company: the first was for $3,750, and the second was for $7,500.
The rebates unnerved investors, who therefore sold 37% of their shares in December. Many people doubt that Tesla will ever be worth a trillion dollars as it was at the beginning of 2022.
There are 12 major manufacturers in the world, yet at its peak, Tesla was worth more than all of them together despite selling a tenth as many vehicles.
At the end of 2018, Tesla was valued at $386 billion, which is substantially greater than its car competitors but far smaller than the tech heavyweights Apple (AAPL), Microsoft (MSFT), Google (GOOGL), and Amazon (AMZN) with which it was being compared a year prior.
Neither Musk nor Tesla has benefited from his $44 billion acquisition of Twitter. Ever since Musk’s interest in Twitter was made public in April, he has sold $23 billion worth of Tesla shares, making him the company’s largest shareholder.
His frequent tweeting and more unpredictable conduct, especially after he became CEO of Twitter, have alienated Tesla investors who want him to focus on his much larger and more lucrative firm.
Musk has responded to his criticisms by asserting that, since taking over Twitter, he has not missed a single important meeting for Tesla.
There is a chance that Tesla’s stock may recover, making Musk the wealthiest person once again. However, Musk’s genius reputation suffered significant harm in 2022, nearly equaling the decline in his fortune.
