Elon Musk's personal fortune slid by $140 billion in 2022
For the most part of 2022, Elon Musk was the wealthiest person in the world. However, as the year draws to a close, Musk has lost the top spot as his personal fortune has diminished by a whopping $132 billion this year, Markets Insider reported.
2021 was a terrific year for Elon Musk. As the world grappled with issues arising out of the pandemic, Musk's electric vehicle-making company made record deliveries and caught the eye of investors taking its stock value to record highs. Toward the end of the year, Tesla's stock price reached an all-time high of $407, and Musk's personal fortune ballooned to over $300 billion, making him the wealthiest person by quite some distance.
2022, though, has been a different story. While the stock continued to do well in the first quarter, Musk's announcement to buy Twitter made investors jittery, who wondered how he would dedicate his time between the five companies he is now the CEO of. Musk's interest in Twitter would likely take precedence over other matters, and the predictions were strengthened as Musk offloaded Tesla shares to finance his Twitter buyout.
Tesla stock is on a decline
With Musk spending increasing amounts of time fixing Twitter and refusing to step down as CEO, even after a public poll he promised to abide by, Tesla stock is showing no signs of recovering anytime soon.
On Tuesday, the stock dropped another 10 percent in valuation marking a 72 drop since the beginning of the year. Musk's fortune, which was largely tied to his stake in Tesla, has also shrunk by $140 billion, considering the latest drop, per Bloomberg Billionaires Index.
Although the markets are also following a downward trend due to tightening fiscal policy from the U.S. Federal Bank, Tesla's drop is significant since the tech-heavy Nasdaq, where Tesla is grouped, has dropped only three percent so far, even after months of hiking interest rates.
Concerns of an incoming recession and increased competition in the EV markets have made Tesla stock less attractive to investors.
Tesla favorite among shorters
Estimates from Bloomberg suggest that SpaceX is now Musk's most valuable asset and contributes $47 billion to his worth. Tesla, whose stock Musk has been selling this year, now contributes $40 billion, while the newly acquired Twitter contributes $20 billion to his overall fortune.
The drop in Tesla's valuation is losing Musk money every day, but it is also making money for those who are betting against the company. According to Markets Insider, Tesla is a favorite among short sellers and is making them billions as its prices continue to fall.
Musk, who appeared to be heading away from Twitter management last week for a brief period, is back posting memes on the platform again.
I’m not brainwashed!! pic.twitter.com/4kx61uu4yy— Elon Musk (@elonmusk) December 28, 2022
Users reacted to this post by asking Musk to stop tweeting and make Cybertruck instead.
Unable to find a suitable successor at Twitter, Musk is expected to be CEO of the social media site for the foreseeable future and even commented that the company wasn't at risk of bankruptcy anytime soon.
The longer Musk spends tinkering with Twitter, and the more Tesla stock will continue to dip, driving him further down on Bloomberg's Billionaire List. India's Gautam Adani is now third on the list, with just $14 billion separating the two.
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