Elon Musk has lost $200 billion since November 2021, a record

SUSANA BATES/AFP Weighed down by Tesla’s annual results and its massive takeover of Twitter, Elon Musk’s fortunes have soared in 2022.

SUSANA BATES/AFP

Weighed down by Tesla’s annual results and its massive takeover of Twitter, Elon Musk’s fortune has melted like snow in the sun in 2020.

ECONOMY – Elon Musk’s fortune has melted like snow in the sun. At 51 years old, the new head of Twitter will have known everything financially. Becoming the second person to reach the symbolic threshold of $200 billion in personal wealth, after Jeff Bezos, Elon Musk has now set a new record.

According to the American chain Bloomberg, the CEO of Tesla is today the only person in the world to have lost almost 200 billion dollars. Based on data from the Bloomberg Billionaires Index, which groups the daily ranking of the 500 richest people in the world (according to their net worth), the media claims that Elon Musk saw his fortune fall to 137 billion dollars, after a dismal year for the Tesla .

As of November 4, 2021, the multibillionaire’s personal fortune still stands at $340 billion, making Elon Musk the richest person in the world. Before being overtaken in December 2022 by Frenchman Bernard Arnault, ahead of the world’s number one luxury group, LVMH. Bernard Arnault is now worth an estimated $162 billion, according to the Bloomberg Billionaires Index.

The Shadow of the Twitter Takeover

To explain the reasons for this unprecedented drop, it is impossible not to dwell on the latest data from the Tesla brand’s stock market. On Wall Street, the automaker actually lost two-thirds of its market value in 2022, due to fears about the demand for electric vehicles, not to mention the dismay generated by the tribulations of the entrepreneur after the acquisition of Twitter.

The manufacturer still increased its deliveries by 45% in the first three quarters, despite the supply problems, and generated almost US$ 9 billion in profits in this period, despite the sharp increase in expenses. But that’s still short of the long-term goal of increasing deliveries by 50% a year.

And even if Tesla still largely dominates the US market with 65% market share in the first nine months of the year, it is well below the 79% of 2020 and that number should drop to less than 20% in 2025. S&P Global.

On Tuesday, December 27th, Tesla’s share in the stock market fell again (-11%), the last of a long series for the company in 2022. Especially since the shadow of Twitter, bought for 44 billion dollars by Elon Musk at the end of October , still hangs. Tesla needs one “a leader who can guide you through the storm” and not a boss “who focuses on Twitter”estimates Wedbush’s Dan Ives in another note published in late 2022.

Loss of credibility with investors

For this famous takeover, the multibillionaire first sold several billion dollars worth of Tesla stock to fund the acquisition and then operating costs of his new toy, selling again for $3.6 billion in early December when he claimed in the spring that they didn’t intends to sell more.

Elon Musk also put the social network in an uproar, dismissing half of the employees, authorizing the return of suspended Internet users, such as Donald Trump, or banning journalists for reasons that are still unclear. “Musk has lost all credibility with the investment community”says Dan Ives, referring “Broken promises” in the sale of shares, “The Twitter Fiasco” and “political controversies” on the platform.

he became “unsustainable” evaluating Tesla without taking into account Elon Musk’s erratic Twitter management abounds in a recent note by Oppenheimer’s Colin Rusch. But in the South African-born entrepreneur’s defense, Tesla shares have also suffered from the general decline in stock markets this year. In a Twitter conversation in mid-December, Elon Musk also acknowledged that rising interest rates and the economic situation would likely slow down demand for Tesla. But “I continue to predict that in the long run, Tesla will be the highest valued company in the world”he said.

On Wednesday, in a message to employees of the company consulted by the CNBC channel, he asked not to “not caring too much about the stock market madness”. It must be said that the group’s share had jumped over 700% in 2020, then 50% in 2021. And it recovered by almost 13% in the last three days of the year, still recording a 65% drop compared to the whole of 2022.

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