How is it possible that Elon Musk has lost $101 billion in one year -Elon Musk Net Worth
When Elon Musk’s net worth reached $277.3 billion in January last year , the Tesla CEO became the richest person in the world , surpassing Amazon founder Jeff Bezos. However, the wealth of the South African businessman has changed since then. Between ups and downs, he has lost about $101 billion in less than a year.
Despite this pronounced decline, Elon musk net worth continues to maintain the title of the richest person in the world, although he is still far from reaching the richest person in the history of humanity. In any case, it is worth analyzing what has happened recently to record this loss. Have they had anything to do with Twitter’s purchase intentions? What role has the electric car company played in it? Let’s see.
Elon Musk’s assets have fallen by more than 30%
On November 4 of last year, the businessman could boast a net worth of $320 billion, but today he can no longer afford that “luxury.” According to Forbes’ real-time updated list of the world’s richest people , Elon Musk currently has a fortune of $219.6 billion . This translates to a drop of approximately 31%, although he is certainly still very rich.
Based on the aforementioned list, we can see that Elon Musk has 62 billion dollars more than the executive president of LVMH, Bernard Arnault; $75.6 billion more than Jeff Bezos and $90.7 billion more than Adani Group founder Gautam Adani. That is, the loss of 101,000 million dollars has not translated into a change in his position in the ranking.
The fortunes of these characters are very dynamic and can literally change from one day to the next. So, how is the aforementioned ranking prepared? As Forbes explains , there are two main elements that are part of the methodology for calculating wealth. On the one hand, we have the prices of their shares and on the other hand other assets such as companies, real estate, art and more .
In the case of Elon Musk, his movements related to the possible purchase of Twitter have impacted his fortune, but not considerably. The businessman made an offer to take over 100% of the social network for $43 billion . Although his assets are much greater, he could not make a direct purchase. The reason? As we have seen, part of his assets is made up of the shares of his companies.
His movements related to the possible purchase of Twitter have impacted his fortune, but not considerably.
Thus, in recent months, the businessman sold about 7,000 million dollars in Tesla shares to obtain part of the money necessary to purchase Twitter and agreed with a group of banks led by Morgan Stanley to obtain a financing line for the amount remaining. However, since the deal has not yet been finalized, the cash value of the shares is still accounted for in his assets .
The biggest impact on Elon Musk’s declining fortune is related to a sharp drop in the shares of his electric car company. In November 2021, they were trading at $414 per share, but after the growing context of inflation, fears of a possible economic recession, and Tesla not meeting the expectations of some analysts, they are now trading at approximately $ 222 .
It remains to be seen, however, what will happen in the coming days with the purchase of Twitter. According to Bloomberg , the businessman should near the deal as quickly as this Friday.The social network, although it is one of the most influential today, is overrated according to some analysts . Either way, the operation will result in a new movement for Elon Musk’s wealth.
Now, as we mentioned at the beginning, the tycoon will still be far from surpassing those who have been the richest people in history. With his assets of 219.6 billion dollars, millions more or millions less, history has an absolute king whose fortune is estimated at 400,000 million dollars. This one wasn’t launching rockets into space or writing on Twitter: he was Mansa Musa, the ruler of the Mali Empire from 1312 .
Elon Musk blames largest wealth loss in cutting-edge historyIn 2022, the billionaire’s fortune decreased by more than $200 billion, the equivalent of Greece’s GDP.
Elon Musk’s net worth has fallen by more than $200 billion over the past 13 months. This constitutes one of the greatest losses of wealth in recent history, according to the British newspaper The Independent .
The boss of Tesla, SpaceX and Twitter actually lost more than half of his fortune between November 2021 and December 2022, according to the Bloomberg Billionaires Index, largely due to the collapse of Tesla shares.
More specifically, Elon Musk lost $208 billion, which is roughly equivalent to the GDP of Greece!
After leading the list of richest people for most of last year, Elon Musk lost his place to French business magnate Bernard Arnault (LVMH) in early December, although he remains ahead other American tech billionaires like Jeff Bezos (Amazon).
338 billion maximum
According to Bloomberg, Elon Musk’s net worth peaked at $338 billion in November 2021, coinciding with Tesla’s prosperity. But the electric car maker lost around 70% of its value in 2022 following production delays in China, vehicle recalls and investor concerns linked to the multi-entrepreneur’s chaotic takeover of Twitter . Hence a new record that the whimsical business leader can boast of, that of the greatest loss of fortune in modern history.
