Elon Musk, the CEO of Tesla and the new owner of Twitter, was the richest man in the world when 2022 began, but he is now the first person in history to experience a personal financial loss of $200 billion.
Elon Musk is the first individual to have his total worth decline by $200 billion. Despite his investments’ sharp drop in value, Musk is still the second-richest person in the world.
In 2021, Elon Musk’s net worth grew significantly as Tesla shares saw considerable gains. The ownership and founding of numerous companies, including Tesla and SpaceX, contributed significantly to Musk’s personal wealth. During the coronavirus epidemic, stock prices in the technology sector rose, and Tesla’s shares hit record highs, making Musk the first individual to have a personal net worth of over $300 billion.
The resurgence of other industries by the start of 2022 led to a decline in Tesla’s valuation.
Alongside tech behemoths like Apple, Microsoft, and Amazon, Tesla was one of the few corporations to ever reach a market capitalization of over $1 trillion in October 2021. However, since November 2021, the share price of the company has experienced sharp drops.
Tesla’s stock price has down over 68 percent for the year despite a 3.3 percent uptick on Wednesday to $112.71. The stock has lost 42 percent of its value only in December, and it’s on pace to finish the month, the third quarter, and the year with its worst performance ever. The worries Musk expressed in his email to employees may have been influenced by these falling stock prices.
Musk has blamed rising interest rates for some of the decrease in Tesla’s stock price, but detractors have cited his frequent use of Twitter as a bigger cause in the company’s decline. As of Wednesday’s close, the market capitalization of the shares had decreased by almost $675 billion as a result of the stock’s drop.