Elon Musk’s drop in fortunes breaks world record

Elon Musk

Elon Musk has broken the world record for the largest loss of personal fortune in history. From November 2021 to December 2022 he lost around $165bn, Guinness World Records said in a blog on its website.

The figures are based on data from publisher Forbes, but Guinness said other sources suggested Mr Musk’s losses could have been higher.

It follows a fall in value of shares in Mr Musk’s electric car firm Tesla after he bought Twitter last year.

His $44bn takeover of the social media company has sparked concerns among investors that Mr Musk is no longer giving Tesla enough attention.

Mr Musk’s losses since November 2021 surpass the previous record of $58.6bn, suffered by Japanese tech investor Masayoshi Son in 2000.

The estimated loss is based on the value of his shares, which could regain their value, meaning Mr Musk’s wealth would increase again.

In December, the Tesla boss lost his position as richest person in the world to Bernard Arnault, the chief executive of French luxury goods company LVMH, which owns fashion label Louis Vuitton.

The value of Tesla shares dropped around 65% in 2022, in part because of Tesla’s performance. The firm delivered just 1.3 million vehicles during the year, falling short of Wall Street expectations.

However, Mr Musk’s takeover of Twitter – where he has sparked controversy by firing large numbers of staff and changing content moderation policies – is behind most of the share slump.

Many Tesla investors believe he should be focusing on the electric vehicle company as it faces falling demand amid recession fears, rising competition and Covid-linked production challenges.

“Long-term fundamentals [at Tesla] are extremely strong. Short-term market madness is unpredictable,” Mr Musk tweeted after the stock markets closed for the year in December 2022.

Mr Musk is now worth about $178bn according to Forbes, while Bernard Arnault has an estimated value of $188bn.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s