Elon Musk, the CEO of Tesla, has faced a significant decline in his net worth, dropping by over $175 billion from its peak. This decline comes as Tesla’s stock has plummeted by 66% from its highest point, leading to a sharp decrease in Musk’s wealth.
Back in November 2021, Elon Musk held the top position on the Bloomberg Billionaires Index with an estimated fortune of $340 billion, surpassing even Warren Buffett by more than threefold. However, Tesla’s stock has experienced a drastic decline, falling from a split-adjusted peak of $415 in 2021 to $142, resulting in a substantial hit to Musk’s net worth.
The share-price slump has caused Tesla’s market capitalization to drop from over $1.2 trillion to below $450 billion, significantly impacting Musk’s wealth due to his 13% stake in the company. Since the beginning of this year, Musk’s net worth has plummeted by $65 billion, or 28%, placing him fourth in the wealth rankings behind Bernard Arnault, Jeff Bezos, and Mark Zuckerberg.
Unlike his peers, Musk is the only billionaire among the world’s top 11 richest individuals whose net worth has declined this year. While others have seen gains, Musk has faced substantial losses, including Zuckerberg, who has seen an increase of $43 billion.
The decline in Tesla’s stock can be attributed to growing concerns surrounding the company. Musk recently announced layoffs of more than 10% of the global workforce, indicating a potential downturn in EV demand. With fewer cars delivered to customers than anticipated, Tesla’s challenges have contributed to the significant drop in Musk’s net worth.
