Elon Musk’s Fortune Is Melting Away

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The CEO of Tesla and Twitter has seen his fortune slump by $101 billion this year.

Elon Musk evolved in a different world.

For over 10 months, he was the only member of the world’s best financial club to ever admit more than two members at a time.

The CEO of Tesla (TSLA) – Get Free Report and owner of the microblogging site Twitter had been a regular there for the past few months – until he was ousted a few weeks ago.

It’s the $200 billion club. And since losing his place there, Musk has never been the same. If the extravagant visionary is still the richest man in the world, his fortune is dwindling. According to the Bloomberg Billionaires Index, Musk had a net worth of $170 billion as of Nov. 21. But his net worth has shrunk by $101 billion, or 37%, this year.

A Thinning Gap (of $13 Billion)

Musk’s position at the helm of the assets is now under threat from French manager Bernard Arnault, CEO of luxury conglomerate LVMH (LVMH). Arnault’s net worth is estimated at $157 billion, just $13 billion behind Musk.

Arnault also saw his luck turn, but much less severely than Musk’s. It lost $21.3 billion, or 12%, in 2022.

Arnault benefits because the luxury sector is relatively resilient to economic slowdown and fears of recession. LVMH last month reported stronger-than-expected third-quarter sales as affluent customers flocked to its fashion brands and Americans took advantage of the strong dollar to visit its stores in Europe.

Demand for luxury goods remains robust given high inflation. Affluent consumers were less affected by the rising cost of living, while the average consumer reduced discretionary spending.

The owner of Louis Vuitton and Dior’s sales were 19.76 billion euros ($20.29 billion) in the third quarter, reflecting organic growth (excluding acquisitions) of 19% year-on-year. ‘other.

Sales in Europe, the United States and Japan increased strongly this year due to strong demand from local customers and the resumption of international travel. Musk, on the other hand, is hurt by the continued decline in Tesla stock, which accounts for much of his fortune.

Since the billionaire made his $44 billion offer to take over Twitter, the EV maker’s shares have steadily fallen in value. That’s because investors fear the social network will distract them as Tesla faces fierce competition from Chinese automakers and legacy automakers.

The resurgence of Covid-19 in China and the fear surrounding the technology sector in an inflationary environment also pose challenges for Tesla.

Tesla shares have lost more than half of their value

Shares of Tesla are down nearly 50% to $167.87 since Musk launched his tender offer on April 25, translating to a $525 billion drop in market capitalization. Since the billionaire signed the deal on Twitter on October 27, Tesla stock has fallen 25%, losing $180 billion in market value in less than a month.

Overall, Tesla stock is down 52.4% this year. Musk’s early decisions took their toll on Twitter and made it even harder for him to monetize the platform as soon as possible, as he took on $13 billion in personal debt to fund the deal.

He carried out waves of job cuts, issued an ultimatum to employees and reactivated the account of ex-President Donald Trump, which the social network used after the events of March 13. 6/6/2021 on Capitol Hill. All of this resulted in the departure of 5,000 employees, ie two-thirds of the workforce.

The serial entrepreneur recently admitted that he barely sleeps since taking over Twitter.

“I’ve got too much work for sure,” Musk said Nov. 14 during an appearance at B20 Indonesia, a business conference running alongside the G20 summit in Bali. “I work as hard as I can – morning to night, seven days a week.”

Days earlier, Musk told attendees of the 29th annual Baron Investment Conference that his workload had gone from 70 hours a week to 120.

Others are among the richest in the world

Indian manager Gautam Adani is the world’s third-richest person with a net worth of $130 billion, up $53 billion since January.

Amazon (AMZN) – Jeff Bezos, founder and executive chairman of Get Free Report, ranks fourth with $116 billion, down from $76.7 billion year-to-date.

Bill Gates, co-founder of Microsoft (MSFT) – Get Free Report, is the fifth richest person in the world with an estimated fortune of $113 billion. His fortune has shrunk by $25.3 billion in 2022. The top 10 includes three other tech moguls: Larry Ellison, co-founder of Oracle (ORCL) – Get Free Report, has a fortune of $92.5 billion, down from $14.6 billion. He is seventh. Larry Page, co-founder of Alphabet (GOOGL) – Get Free Report, is in eighth place with $88.7 billion, down from $39.7 billion. And former Microsoft CEO Steve Ballmer is tenth with a fortune of $86.3 billion, down from $19.3 billion.

Legendary investor Warren Buffett is the sixth richest person in the world. He is worth $109 billion, down from $406 million. And Indian billionaire Mukesh Ambani is ninth. His fortune is estimated at $88.2 billion, down $1.79 billion since January.

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