Elon Musk’s Net Worth Plunges by $160 Billion Amid Tesla Troubles

Elon Musk, the CEO of Tesla, has seen his wealth plummet by over $160 billion from its peak as the electric car company faces a series of challenges. Tesla's stock has dropped by 62% from its highest point, leading to an estimated $166 billion decline in Musk's net worth. As of now, Elon Musk's net worth stands at around $174 billion, a significant decrease from the $340 billion he held in November 2021.

Tesla Woes Impact Musk's Wealth

In November 2021, Elon Musk held the top position on the Bloomberg Billionaires Index, boasting a fortune of $340 billion, which positioned him well ahead of Warren Buffett by more than three times. However, since then, Musk's net worth has taken a hit, dropping by approximately $166 billion to its current level. The primary reason behind this decline has been the sharp fall in Tesla's stock price, which has gone from a split-adjusted peak of $415 in 2021 to $155, marking a 62% decrease.

Market Capitalization Plunge

With Tesla's share-price decline, the company's market capitalization has also suffered, dropping from over $1.2 trillion to below $490 billion. Musk's wealth has been significantly impacted by this downturn as his 13% stake in Tesla represents a substantial portion of his total net worth.

Musk's Wealth Rankings

Elon Musk's fortunes have dwindled relative to his billionaire peers in the early part of this year. While he held a fortune of $229 billion in January, topping the Bloomberg rich list, his net worth has since plummeted by $55 billion, translating to a 24% decrease. Musk currently holds the fourth spot in the wealth rankings, trailing behind Bernard Arnault of LVMH, Jeff Bezos of Amazon, and Mark Zuckerberg of Meta.

Tesla's Challenges and Musk's Diversified Holdings

Tesla has been grappling with various issues, including lower-than-expected vehicle deliveries, price cuts impacting profit margins, and increased competition from Chinese electric vehicle manufacturers like BYD. Additionally, Musk has highlighted the adverse effects of rising interest rates on consumer demand.

It's worth noting that Elon Musk's wealth is not solely dependent on Tesla. He also has a significant stake in SpaceX, valued at $180 billion in December, and a majority ownership of X, the company he acquired and rebranded from Twitter in 2022.

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By: tmohamed@insider.com (Theron Mohamed)
Title: Elon Musk’s Net Worth Plunges by $160 Billion Amid Tesla Troubles
Sourced From: www.businessinsider.com/elon-musk-net-worth-tesla-stock-ev-billionaires-wealth-layoffs-2024-4
Published Date: Thu, 18 Apr 2024 08:04:55 +0000