The stocks of Elon Musk‘s EV manufacturer business Tesla have dropped to their lowest level in two years while he is still very busy rebuilding Twitter. Elon Musk’s net worth has decreased significantly as a result, going above $100 billion this year. Musk remains the richest man in the world despite this significant decline in wealth.
Elon Musk’s net worth is at $170 billion, according to the Bloomberg Billionaires Index, and has decreased by $101 billion thus far this year. Bernard Arnault, CEO of Louis Vuitton, comes in at number two on the list with a net worth of $157 billion, followed by Gautam Adani ($130 billion), Jeff Bezos ($116 billion), and Bill Gates ($113 billion).
Yesterday, or on Monday, Tesla stock fell 6.8% to $167.87 in New York trade, its lowest level since November 2020. Additionally, the shares are down 58% so far this year and 20% over the previous month. The nearly 30% loss in the tech-heavy Nasdaq 100 Index this year pales in comparison to this. Musk also has a sizable share in SpaceX, a private company that makes satellites and rockets, and whose most recent valuation was $125 billion. The market value of Musk’s SpaceX stake is $47 billion. He also possesses assets linked to Twitter, the Boring Company, and cash totaling roughly $26 billion.
The majority of Musk’s wealth is made up by Tesla, which is having trouble competing in China, its biggest market outside of the US, because of growing COVID-related regulations. According to a Reuters report, Tesla recently even announced the recall of more than 300,000 vehicles due to defective tail lights. The company is also reportedly dealing with supply-chain bottlenecks and rising raw material costs.
In April, Musk started the acquisition of Twitter. As a legal dispute with Twitter loomed, he sold approximately 8 million Tesla shares, valued at $7 billion, in August. After Musk attempted to back on their acquisition deal, Twitter filed suit to enforce the terms. The corporation was then accused of fraud, breach of contract, and breaking a securities law, according to Musk’s countersuit.
It was a turbulent takeover of Twitter. Despite having stated that he was “done selling Tesla stock,” Wedbush analysts claim that Musk recently sold an additional $4 billion in stock to bridge the deal’s shortfall. According to documents submitted to the Securities and Exchange Commission this week, he also sold an additional 19.5 million Tesla shares, valued at $3.9 billion, over three days. Since April, he has now sold shares of Tesla worth $19.3 billion. His net worth fell as a result of that and the decline in the price of Tesla stock.
Due to his purchase of Twitter, Musk not only lost favour with investors, but he also faced criticism for the modifications he made to the social media firm almost afterward. Elon’s actions not only damaged his reputation, but also eroded “investors’ trust,” which most likely contributed to a significant decline in his net worth.