Elon Musk broke the world record for ‘worst fortune loss’ after a spectacular crash in his net worth, according to The Washington Post, during which the tech billionaire ended his run as the world’s richest man last month. Started it. The worst loss of fortune in history has happened. According to Guinness World Records.
Citing Forbes data, Guinness said that Musk has lost about $ 182 billion between November 2021 and the beginning of this month. Data from the Bloomberg Billionaires Index shows they lost about $200 billion over the same period.
That’s a record-breaking loss, according to Guinness, which said in a blog post that the previous record was set during the tech-stock crash of 2000, when Japanese billionaire Masayoshi Son, CEO of SoftBank, reportedly lost $58.6 billion.
Elon Musk’s loss comes amid the fallout from his $44 billion purchase of Twitter, where he has fired thousands of employees in a thorny political debate. Investors in Tesla, the electric-car maker Musk runs, have expressed concern that he is spending so much time on Twitter trying to right the ship that is hurting Tesla.
According to Bloomberg News, since December 1, Tesla’s share price has declined by 39 percent. Measuring the net worth of individuals at a given point in time is a difficult task. Entrepreneurs whose net worth is tied to the price of a particular stock may see huge fluctuations within short time frames due to external factors such as market conditions or government policy.
Musk has lost significant amounts of money in the past before recovering and increasing his net worth again. But this crisis is in part of Musk’s own making. He sold significant amounts of his Tesla shares to buy Twitter at a premium, as the carmaker grapples with increased competition in the electric-vehicle market, shortages of chips and raw materials, and production delays and missed deadlines.
Elon Musk has said that he will sleep in Twitter’s San Francisco office until the organization recovers. Frustration with Elon Musk has sparked shareholder lawsuits against Tesla, including one filed in Delaware in 2018 that claims the pay package he received was excessive and alleges Tesla’s board members mismanaged it.
did not act independently in granting the sanction. According to Bloomberg News, Musk’s space manufacturing company, SpaceX, accounts for more than 37 percent of his net worth, and publicly traded Tesla accounts for about 33 percent.
The rest is made up of shares in Twitter and The Boring Company, the firm Musk created to build tunnels with the goal of relieving urban traffic. The recent decline in Elon Musk’s net worth has been largely due to the declining value of Tesla stock. Elon Musk has repeatedly blamed this on macroeconomic trends, which include the Federal Reserve’s historically high 2022 interest rates.
In an exchange with Twitter and Tesla investor Ross Gerber last month about Tesla’s value, Elon Musk tweeted that, as soon as bank savings account interest rates are guaranteed, stock market returns begin to trend. it happens. If they do, which is not guaranteed, people will quickly move their money out of the stock and into cash, causing the stock to fall.
Elon Musk apparently assuaged investors’ concerns that his investment in Twitter is detracting from the value of his other projects. Musk tweeted in December, “I will make sure Tesla shareholders benefit from Twitter in the long run.” He did not give details.
Bernard Arnault, CEO and chairman of French luxury retail company LVMH, has become the richest person in the world. As of Thursday, Arnault had a net worth of $182 billion, according to Bloomberg’s Billionaires Index. According to Forbes, Arnaut and his family have a net worth of $204 billion, while Musk has a net worth of $146.5 billion.
These tech moguls lost a combined $433 billion this year, a personal decline in fortunes not uncommon at the highest levels of business, especially in technology, although the scale of Elon Musk’s losses is staggering. As Guinness notes, the person who was closest to the loss of Musk’s personal fortune, Sun, saw his net worth increase by $5 billion in one day during the dot-com crash of 2000.
Tops the list of the world’s richest people: Forbes ranked him 74th on its 2022 billionaires list and 139th on Bloomberg’s Billionaires Index. But Elon Musk’s fortunes may yet rise. As Guinness notes, despite its decline in prosperity, Tesla remains the world’s most valuable car company, with a market cap $100 billion more than their closest rival, Toyota.