News JVTech Despite colossal losses, is Elon Musk still the richest man in the world?
Published on 23/11/2022 at 07:35
South African billionaire Elon Musk has been making headlines since he took over Twitter on October 29, but there are other reasons he’s being talked about right now. Among them are the colossal losses that the businessman has suffered since the beginning of the year.
Even though Elon Musk seems to spend most of his time posting provocative tweets and laying off fire at Twitter, his newest acquisition, the billionaire probably has other concerns. The fact is that the current economic context and the takeover of the social network, which cost him the pharaonic sum of 44 billion dollars and required the resale of millions of Tesla shares, contributed to to melt his fortune in a consequent way. But there is another reason for this.
In effect, Elon Musk’s jackpot, now valued at $169.8 billion, is overwhelmingly made up of Tesla shares. It has been several years since the boss of the company no longer receives a salary, but instead receives shares according to the results of the company. And since the beginning of the year, we cannot say that Tesla is in great shape: on the contrary, the losses for the South African are reaching peaks.
100 billion lost for Elon Musk in 2022
In an article dated November 21, Bloomberg reports that Elon Musk’s fortune has shrunk by $100 billion since the start of the year. The main reason for this is a stock that has been plummeting for months: that of Tesla, which has fallen by 52% since the start of 2022until returning to its November 2020 level. A spectacular setback that can be explained in several ways.
First of all, the current economic context is not particularly conducive to the sale of very expensive electric cars. Next, some of Tesla’s vehicles are produced in China, a country still plagued by Covid-19 and extended confinements linked to the government’s “Zero Covid” policy. It should also be mentioned the recall of more than 300,000 Tesla Model 3 and Tesla Model Ycars that are affected by a bug on the rear lights.
Finally, Bloomberg believes that Elon Musk’s behavior since his takeover of Twitter tends to cause some reluctance on the part of potential investors, who are reluctant to place their marbles in the billionaire’s businesses. A week ago, Elon Musk says he’s already gone looking for a new leader for Twitterin order to free up time to take care, in particular, of Tesla.
Despite everything, Elon Musk is still the richest man in the world
Despite $100 billion in losses recorded in 2022, Elon Musk remains, to this day, the richest man in the world, notably ahead of Indian tycoon Gautam Adani and Amazon founder Jeff Bezos. A situation which is, in part, due to the fact that many of the world’s top fortunes have also suffered losses this year. However, if Tesla’s stock continues to fall and Twitter’s situation continues to deteriorate, the situation could change by next year.