Elon Musk, the billionaire and CEO of Twitter, Tesla, and SpaceX, has become the first person in human history to lose $200 billion from his net worth, as per The New York Post. Never before has a person lost this much fortune.
According to The New York Post, the decline in his net worth has been attributed to a 66% drop in Tesla shares over the past year.
The steep drop in the prices of Tesla’s shares is linked to Elon Musk’s diversion from the firm owing to the Twitter saga, as well as supply-chain constraints in China exacerbated by the Russia-Ukraine war.
Elon Musk’s Wealth Decline
According to Forbes’ real-time billionaires list, Elon Musk’s current net worth is $136.9 billion and ranks second. He owns around 25% of Tesla through stock and options, but has pledged more than half of his shares as security for loans.
After Musk declared a 9.1% ownership stake and threatened a hostile takeover, Twitter’s board decided to sell the company to Musk for $44 billion in April 2022.
Later, Musk tried to back out, but Twitter sued him. The acquisition was finalised in October 2022. Musk currently owns about 74% of the company.
On November 4, 2021, Elon’s fortune peaked at $340 billion, and he remained the world’s richest person until this month, when he was surpassed by Bernard Arnault, the French entrepreneur behind luxury goods giant LVMH.
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Musk has no substantial assets left following a 65% drop in Tesla shares in 2022 and a $44 billion acquisition of Twitter.
Following these revelations, Tesla has announced a price reduction in several of its models, including a $7,500 discount on the Model 3 and Model Y.
Musk, on the other hand, has rejected Tesla’s concerns and has regularly turned to Twitter to blame the Federal Reserve for increasing interest rates.
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