‘Blacker’ than Mark Zuckerberg, Elon Musk became the billionaire who lost the most money of the year, one day ‘flying’ to $ 8.6 billion

Tesla CEO Elon Musk is still the richest person in the world with a net worth of $169.8 billion, according to the Bloomberg Billionaires Index, even after seeing his net worth “evaporate” by 8.6 billion USD in today’s session. Thus, after only 1 year, Elon Musk’s fortune lost a total of $ 100.5 billion, more than anyone in the billionaire world, after peaking at $ 340 billion in 2021.

Tesla, the company that contributes most to Elon Musk’s fortune, is struggling with COVID-19-related restrictions in China – its largest market outside the US. The Austin, Texas-based company recently announced a recall of more than 300,000 models due to faulty taillights, while facing supply chain difficulties and rising raw material costs.

Most recently, the fatal Tesla car incident that is about to go to trial in South Korea also once again raises big questions about Tesla’s safety in the context that the company is facing a series of lawsuits and lawsuits. closely monitored by regulatory authorities.

“Tesla has not provided specific diagnostic data. All safety checks are performed with the naked eye only. This is a very outdated test method, especially when we know about the patents that Tesla owns,” said Park Sang-hyuk, a South Korean parliamentarian.

Shares of the electric-car company fell 6.8% to $167.87 per share in the last session, the lowest level since November 2020. That means Tesla stock has lost 52% of its value this year, much larger than the 29% drop in the tech-biased Nasdaq 100 Index.

‘Blacker’ than Mark Zuckerberg, Elon Musk became the billionaire who lost the most money of the year, Tesla shares were still half worth

In its quarterly earnings report released on October 19, Tesla’s revenue was just below analyst expectations, reaching $21.45 billion, well below the $21.96 billion forecast by economists. economic.

The reason is partly due to persistent inflation after the decision of the US Federal Reserve (Fed): strongly raised interest rates. This erodes the attractiveness of risky assets, including strong growth stocks. Prior to that, many tech stocks had rallied rapidly during the pandemic, as central banks around the globe eased policy to support the economy’s resilience to the outbreak.

“Musk sells expensive cars. So a recession is not good news,” said Matt Maley , chief market strategist at Miller Tabak + Co.

Musk, 51, is focusing his attention on Twitter, the social networking platform he bought last month for $44 billion. The company has lost about 60% of its workforce since Musk took over, following the latest round of layoffs on Sunday. Many questions have been raised, whether this billionaire is spreading excessively for his famous business ventures.

According to Bloomberg, Tesla’s reliance on Musk is considered one of the risk factors for the company, noting that “while Musk spends considerable time with Tesla and is very active in management, he does not really care about this electric car company”.

Before that, the decision to buy Twitter was considered by experts to be the worst idea Musk had ever had. Disgruntled users will boycott and publicly trash his other projects, including Tesla and SpaceX. Even many people have come to the ironic conclusion that there cannot exist any scenario where Elon Musk succeeds with Twitter, Tesla and even SpaceX.

“You can’t let one CEO run four or five companies and have the same effect. That’s not an expectation we should have,” said David Yoffie, a professor at Harvard who has studied Musk and businesses.

Tesla, the company that contributes the most to Elon Musk’s fortune, is struggling with restrictions related to the COVID-19 epidemic in China

Musk then began to be compared to the car king Henry Ford – who was instrumental in helping America wipe out the horse-drawn carriage and gradually transition to the automobile era. This is not a compliment, because if Musk continues to indulge in the little things, Tesla, the company that helped Musk make a name, will soon lose the throne like the Ford Motor Company of the 1920s.

By: Bloomberg