A hard blow for Musk as he loses half of his fortune

0
511
Musk as he loses half of his fortune

On November, 2021, Elon Musk’s fortune increased to $341 billion; this made him have the largest and modern history. Unfortunately, by this year his fortune had decreased by more than half and was down to only $183 billion.

Based on the Bloomberg Index of the world’s wealthy and data from Monday’s close of US stocks, the American business magnate has lost nearly 47% of his wealth in less than a year.

How did that happen?

The world’s richest man, Tesla (NASDAQ: TSLA) CEO Elon Musk, appears to have quickly lost interest in the electric car giant or sell a portion of his stock to fund the controversial deal.

The internal strife and massive layoffs at Twitter seemed to be the reasons for the penalty levied against Elon Musk, who purchased the company in a 44 billion dollar deal. This unsettlement directly impacted Musk’s wealth.

Mask’s fortune

Due to continuous poor judgement on Elon Musk’s behalf, his fortune has consistently lowered since August 2021. For example, yesterday Tesla shares plunged to their lowest numbers in over 17 months, costing Musk nearly $7 billion. In total, from the beginning of this year until now, Musk has lost 33% of his wealth–that amounts to about $87 billion dollars.

Last November, when Tesla’s stock reached unprecedented heights at $1230 per share, Elon Musk’s net worth increased to $341 billion. However, by yesterday’s close of trading, Bloomberg indicated that Musk had lost 47% of his wealth- up to $183 billion.

Yesterday, he lost $158 billion dollars and still held the first place among the world’s wealthiest people.

What happened?

Musk was not satisfied with layoffs, so he also launched a series of tweets that announced changes to the company. These changes included adding new fees and launching new services.

Furthermore, the sarcasm of those who reject these amendments from Twitter users adds insult to injury by calling for them to leave the platform. This is in addition to explicit support for Republicans in midterm elections.

During that time frame, investors grew increasingly worried that Musk would either lose interest in Tesla or sell some of his shares to fund the Twitter deal.

What about Tesla?

Tesla’s stock, which is the primary source of Elon Musk’s wealth, fell to a 17-month low at the close of Monday’s session. This continued decline comes as a result of Musk’s statements and tweets regarding recent crises.

Since Musk announced the Twitter purchase deal on October 27th, Tesla’s stock has declined by more than 12%, compared to the stability of the S&P 500 index and Nasdaq 100’s decline of 1.9% in the same period.

Shares of Tesla stock have been sold off recently, after CEO Elon Musk bought Twitter. Some investors are concerned that Musk is more focused on the social media platform than running Tesla’s business.

Musk has written several tweets over the past few days about his plans for Twitter’s business model, including charging $8 for verification tags and allowing long posts to be posted on the platform.

guest
0 Comments
Inline Feedbacks
View all comments