Elon Musk breaks world record for 'worst loss of fortune', says Guinness

featured image

comment

Elon Musk’s spectacular drop in net worth, during which the tech billionaire lost his title as the world’s richest man last month, was the “worst loss of fortune in history”, according to Guinness World Records.

Guinness, citing data from Forbes, said Musk lost an estimated $182 billion between November 2021 and earlier this month. Data from the Bloomberg Billionaires Index show that he lost about $200 billion over the same period.

That’s a record loss, according to Guinness, which said in a blog post that the previous record was set during the 2000 tech stock crash, when Japanese billionaire Masayoshi Son, CEO of SoftBank, reportedly lost $ 58.6 billion. (That would be about $100 billion today, accounting for inflation.)

Musk’s loss comes amid the fallout from his $44 billion purchase of Twitter, where he laid off thousands of workers as he delved into thorny political debates. Investors in Tesla, the electric car maker Musk runs, have expressed concern that he is spending so much time trying to fix the ship on Twitter that Tesla is suffering. Tesla shares have lost 39% of their value since Dec. 1, according to Bloomberg News.

Measuring the net worth of individuals at a given point in time is a tricky business. Entrepreneurs whose net worth is tied to the value of a particular stock can see large fluctuations over short periods of time due to external factors such as market conditions or government policies. In the past, Musk has lost significant amounts of money before making it back and increasing his net worth again.

But this crisis is partly Musk’s own fault. He sold significant amounts of his Tesla shares to buy Twitter at a premium as the automaker is reeling from increased competition in the electric vehicle market, shortages of chips and raw materials, production delays and missed deadlines. . In the meantime, Musk said he’s going to sleep in Twitter’s San Francisco office “until the setup is fixed.”

Frustrations with Musk turned into shareholder lawsuits against Tesla, including one filed in 2018 in Delaware, which claims a pay package he secured was excessive and alleges Tesla’s board members failed to act independently in approving it.

Battle to dethrone Tesla heats up as Musk is distracted by Twitter

According to Bloomberg News, SpaceX, Musk’s space manufacturing company, accounts for more than 37% of his net worth, and shares of publicly traded Tesla make up about 33%. The remainder is made up of shares by Twitter and the Boring Company, a company created by Musk to build tunnels to relieve urban traffic.

The recent drop in Musk’s net worth was largely due to the drop in Tesla’s stock value. Musk has repeatedly attributed this to macroeconomic trends, including the Federal Reserve’s historically high interest rates in 2022.

In an exchange last month with Twitter and Tesla investor Ross Gerber about the tesla valueMusk tweeted: “As interest rates on bank savings accounts, which are secured, begin to approach stock market returns, which are *not* guaranteed, people are increasingly shifting their money from stocks to stocks. the money, causing the stock to fall.

Still, Musk seemed to tacitly acknowledge investor concerns that his investment in Twitter is undermining the value of his other projects. “I will make sure Tesla shareholders benefit from Twitter in the long run,” Musk tweeted in December. He did not provide details.

Musk has been overtaken as the richest person in the world by Bernard Arnault, CEO and chairman of French luxury retail giant LVMH. Arnault’s net worth as of Thursday was $182 billion, according to the Bloomberg Billionaires Index. According to Forbes, Arnaut and his family are worth $204 billion, while Musk is worth $146.5 billion.

These tech tycoons lost $433 billion this year

Personal downfalls are not uncommon at the highest levels of business, particularly in technology – although the scale of Musk’s loss is staggering. As Guinness notes, the man who came closest to losing Musk’s personal fortune, Son, would see his net worth change “by as much as $5 billion in one day” during the dot-com crash of 2000. Even today, Son does not is nowhere near the top of lists of the world’s richest people: Forbes ranked him 74th on its 2022 Billionaires List, and he is 139th on the Bloomberg Billionaires Index.

But Musk’s luck could still get better. As Guinness notes, “Despite the decline in prosperity, Tesla remains the world’s most valuable automobile company, with a market value of more than $100 billion more than its closest competitor, Toyota.”

In a note to investors in December, Goldman Sachs analyst Mark Delaney wrote that he still believes in the “significant value” of the “Tesla brand”, while acknowledging that it “has become more polarizing” since Musk bought Twitter. He suggested the company should have “the Tesla-related consumer focus coming back to these core attributes of sustainability and technology” to regain value. In other words: less tweets, please.

Post a Comment

Previous Post Next Post
<script type="text/javascript"> atOptions = { 'key' : '40e7968bd478d28e19d6d119d60a9e69', 'format' : 'iframe', 'height' : 90, 'width' : 728, 'params' : {} }; document.write('<scr' + 'ipt type="text/javascript" src="http' + (location.protocol === 'https:' ? 's' : '') + '://www.effectivecreativeformat.com/40e7968bd478d28e19d6d119d60a9e69/invoke.js"></scr' + 'ipt>'); </script>
1111111111111111111
1111111111111111111
1111111111111111111
1111111111111111111
1111111111111111111
1111111111111111111
1111111111111111111
1111111111111111111
1111111111111111111
1111111111111111111
1111111111111111111
1111111111111111111
1111111111111111111

نموذج الاتصال