Billionaire Elon Musk is making history by becoming the first person to lose $200 billion in his personal fortune.
The Tesla originator and Twitter proprietor have a net worth of $340 billion as of Nov. 2021, but his wealth nosedived to $137 million according to the Bloomberg Billionaire’s Index.
$200 billion too much
Musk was stripped of his title as The World’s Richest Man and the title is now being handed over to Bernard Arnault, the French chairman and CEO of LVMH.
Since his headline-gripping Twitter “coup,” Musk has taken huge steps to cut costs at the social media company.
He ripped roughly 75% of the 7,500 Twitter employees and is closing the company’s Seattle offices after reportedly refusing to pay rent.
The “culprit” of the loss?
Musk’s recent purchase of Twitter took so much time from him as he had to spend countless hours probing into the company’s policies and devoting his energy to refining its technology. His attention to Twitter seemed to have triggered Tesla stocks to fall over -65% in 2022, the stock’s largest annual drop ever. This Tesla stock plunge plummeted his net worth by an astounding $174.5 billion from his peak net worth of $320 billion in November 2021 at Tesla’s all-time high price.
According to Bloomberg’s wealth index, Musk was compelled to sell much of his Tesla stock as a result of his epic $44 billion purchase of Twitter.
Musk’s current net worth
Projections of Musk’s net worth have diverged over the years, with Forbes pegging it at over $146.5 billion and Bloomberg assessing a lower amount of $137.5 billion. Numerous facets have contributed to this incongruity, including the performance of Musk’s public and private companies, how his share of ownership in privately held companies is valued, stock market fluctuations, and his personal investments. Since he lost $200 billion, his net worth was much higher then.
However, the current net worth of Elon Musk is approximately $146.5 billion according to Forbes.
Can Musk bounce back?
How much Elon Musk’s net worth would be in 2023 will likely be influenced by the achievement of his numerous business ventures, including SpaceX, Open AI, The Boring Company, and Neuralink. But to recover $200 billion that quickly, will be a tough call.
While it’s improbable to calculate his future net worth, it’s obvious that Musk’s diverse entrepreneurial projects and his innovative approach to business will continue to be the major contributors to his continued financial success.
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