ZINGER KEY POINTS
- Tesla shares are deep in bear market territory, having lost about 60% from its Nov. 2021 highs.
- Elon Musk’s net worth has seen a record erosion, keeping in line with the slump in Tesla’s stock.
Elon Musk’s fortunes suffered a serious dent this year, as the shares of his electric vehicle venture Tesla Inc. languish.
Musk’s net worth stood at $170 billion, based on Tesla stock’s closing price on Monday, the proprietary billionaires’ index compiled by Bloomberg showed. Year-to-date, the world’s richest man has lost about $101 billion of wealth, the first time he has lost over $100 billion in a year, Bloomberg said.
Musk’s fortunes are closely tied to Tesla stock via the stake he holds in the electric vehicle venture. He also owns a 44% stake in SpaceX, which is still a closely-held company.
Among the other billionaires who have bled money heavily are Meta Platforms Inc.’s Mark Zuckerberg, Binance’s Changpeng Zhao and Amazon Inc. founder Jeff Bezos.
Why It’s Important:
Tesla shares have been on a downhill since the start of the year. After closing at a two-year low on Friday, the stock fell 6.84% on Monday before settling at a fresh two-year low of $167.87, according to Benzinga Pro data.
Tesla’s woes are manifold. The company is facing a slowdown in China — one of its key markets from the perspective of both demand and supply. Reports suggest the company is planning to follow up on its two price cuts over the past month with another before the end of the year as demand dries up.
Competitive pressure is also weighing down on the EV giant, which once had all the market for itself. The lucrative market for EVs has led to the mushrooming of several upstarts and pivoting of traditional automakers into EV manufacturing.
To make matters worse, Musk himself has introduced a risk proposition by deciding to buy Twitter. Musk is believed to have overpaid for the platform which has forced him to offload some of his Tesla stake to meet the shortfall in the purchase price. Musk’s time spent on setting right Twitter and ironing out transition-related issues hasn’t been looked upon positively by retail investors.
Tesla is down about 29% in the year-to-date period and has pulled back a whopping 60% from its all-time high of $414.50 reached on Nov. 4, 2021. When Tesla’s stock price peaked, Musk’s net worth was at around $340 billion.
Tesla closed Monday’s session down 6.84% at $167.87, according to Benzinga Pro data.
Originally Posted November 22, 2022 – Elon Musk Sees Record Net Worth Erosion Amid Tesla Headwinds, Twitter Missteps — Here’s How Much He Lost In 2022
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Disclosure: Interactive Brokers
Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Benzinga and is being posted with permission from Benzinga. The views expressed in this material are solely those of the author and/or Benzinga and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
In accordance with EU regulation: The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.
Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.