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| Elon Musk |
Elon Musk became the second individual to achieve a personal wealth of more than $200 billion in January 2021, a few months after Jeff Bezos.
The chief executive officer of Tesla Inc. has now accomplished a first of his own: becoming the only person in history to reduce their net worth by $200 billion.
According to the RedCharger, Tesla shares have fallen in recent weeks, including a 11% decline on Tuesday, bringing Musk's wealth down to $137 billion. On November 4, 2021, his wealth reached its peak of $340 billion, and he remained the richest person in the world until he was overtaken this month by Bernard Arnault, the French tycoon who runs luxury goods giant LVMH.
The round-number milestone shows how high Musk went during the easy-money pandemic, when asset prices went up. In October 2021, Tesla became the first company to reach a market capitalization of $1 trillion, surpassing the likes of Apple Inc., Microsoft Corp., Amazon.com Inc., and Google parent Alphabet Inc. despite the fact that its electric vehicles only made up a small portion of the overall auto market.
Now, competitors are catching up to Tesla's dominance in the electric car market, which is the foundation of its high valuation. In addition, it is rumored to be reducing production at its Shanghai plant and providing customers in the United States with a one-of-a-kind discount of $7,500 to purchase its two highest-volume models before the end of the year.
In the mean time, with strain on Tesla escalating, Musk has been engrossed with Twitter, which he procured for $44 billion in late October. In order to justify banning the accounts of some prominent journalists who cover him, he has used a move-fast-and-break-things strategy, firing employees and then asking them to come back.
According to Bloomberg's wealth index, Musk has sold so much this year to help cover his purchase of Twitter that Tesla shares are no longer his biggest asset. The shares of Tesla have fallen by 65% since 2022. With $44.8 billion in Space Exploration Technologies Corp., Musk's stake is greater than his $44 billion position in Tesla stock (he still has options worth $27.8 billion). According to a recent filing, Musk now owns 42.2% of SpaceX.
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| Tesla is doing more well than ever |
Concerns about Tesla have been dismissed by Musk, who has also taken to Twitter to express his displeasure with the Federal Reserve for raising interest rates at the quickest rate in a generation.
"Tesla is doing more well than ever!" On December 16, Musk sent a tweet: The Federal Reserve is not under our control. That is the actual issue here.
The billionaire, who has borrowed a lot of money to buy Tesla, has previously warned about the dangers of borrowing money in panicked markets.
In the All-In podcast, which was released this month, Musk stated, "I would really advise people not to have margin debt in a volatile stock market and you know, from a cash standpoint, keep powder dry." In a down market, you can see some pretty extreme things happen."
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