Why Did Elon Musk Lose 200 Billion? What Led to This?
Why Did Elon Musk Lose 200 Billion? Elon Musk witnessed a $200 billion decline in net worth in the fall of 2023. Many people are still wondering what went wrong. Was Musk wrong to make this commercial decision? Or was there another reason?
We will take a look at the reasons for Musk’s financial downturn and what it means for his future.
Why Did Elon Musk Lose 200 Billion?
The story claims that since November 2021, Musk has lost between $180 billion and $200 billion, primarily as a result of the recent underperformance of Tesla stocks.
In 2021, his net worth was above $320 billion; at this point, it was over $147 billion.
Nevertheless, Musk is still the second richest person in the world, behind only Bernard Arnault, the CEO of LVMH, based on data from Forbes.
Despite rivals leading to a 65% drop in the stock’s worth, Tesla’s sales rose in 2022. They set a new record, delivering 40% more than they did the year before.
In 2000, the Guinness survey announced that Masayoshi Son, a tech giant from Japan, set a record. His account lost $58.6 billion, making him the wealthiest individual in history.
Does Musk Still Own Tesla?
Elon Musk continues to hold a big part of Tesla, even though his portion has dropped a bit of late.
As of January 2024, Musk owns more than 13% of Tesla’s total shares. That’s about 411 million shares and valued at almost $90 billion. For sure, Musk remains Tesla’s biggest individual holder of shares.
The interesting part is this. Musk’s Tesla shares decreased from its peak level. Why? Well, Musk sold some of them in 2023. And guess for what? To buy Twitter!
What is Elon Musk’s Current Net Worth?
Elon Musk tops the world’s rich list with a fortune worth $229 billion. In December 2020, Tesla made history by being the most substantial inclusion in the S&P 500.
Consequently, Musk ascended to the peak of global wealth in January 2021. The fluctuation of his standing is tethered to Tesla’s market value.
April 2022 saw Musk making a bold move to privatize X. It culminated with a striking $44 billion buyout. Musk pledged $21 billion of his wealth to secure this pivotal transaction.
Before the takeover news, Musk got rid of 9.6 million Tesla shares. They were worth about $8.5 billion.
In July 2022, Musk chose to pull out of the takeover. The company didn’t like this, so it sued him.
Musk fought back, though. First, he sued the company. But then, he decided he’d rather just buy it.
Final Words
While this was a massive loss, it doesn’t mean that Musk’s companies are failing. In fact, Tesla is still a leader in the electric vehicle industry, and SpaceX is making groundbreaking progress in space exploration.
So while the loss is significant, it’s not indicative of a larger trend or failure on Musk’s part. He remains a visionary leader and entrepreneur.
READ ALSO!!!
- Why Did Elon Musk Start Tesla?
- Why Did Elon Musk Leave OpenAI?
- Why Did Elon Musk Rocket Explode?
- Why Did Elon Musk Change Twitter to X?
Views: 0
