According to media sources, tech entrepreneur Elon Musk has become the first person in history to lose more than $200 billion in wealth. The abrupt decline occurred this year when shares of Tesla, controlled by Elon Musk, fell by more than 11% from their value for the entire year.
Musk’s net worth reached its peak in November 2021 at 340 billion. Since then, it has continued to decline.
For his part, Musk has downplayed Tesla-related issues and frequently criticized the Federal Reserve on Twitter for hiking interest rates at the quickest rate in a generation.
“Tesla is executing better than ever!” Musk tweeted on December 16. (Modafinil) “We don’t control the Federal Reserve. That is the real problem here.
The billionaire, who has previously taken out large loans against his ownership position in Tesla, has recently cautioned against the risks of borrowing money during volatile markets.
“I would really advise people not to have margin debt in a volatile stock market and you know, from a cash standpoint, keep the powder dry,” Musk said in the All-In podcast released this month. “You can get some pretty extreme things happening in a down market.
It should be emphasized that, after Amazon founder Jeff Bezos, he was the second individual in history to ever surpass the $200 billion threshold. Musk reached this milestone in 2021, which was made possible by a sharp increase in the price of Tesla stock.
After passing Elon Musk earlier this month, Bernard Arnault, the owner of LVMH, is now the richest person in the world.
What led to the fall of Tesla shares’ value?
Elon Musk paid a staggering $44 billion to purchase the well-known microblogging service Twitter this year. Since Elon Musk first proposed the transaction at the beginning of this year, the Twitter controversy has dragged on for the entire year. Finally, under legal pressure, he was forced to seal the agreement by the end of October.
Tesla shareholders lost faith in Elon Musk because they thought he would get preoccupied with Twitter and become disengaged from the firm.
The Twitter effect
Musk paid $44 billion for the social media network in late October. He sold a big portion of his Tesla stock to help fund his Twitter purchase. His most valuable asset is no longer the electric carmaker.
