One of the biggest 3-week declines in the history of the Bloomberg Billionaires Index occurred in the month of January as a result of the loss of almost $50 billion by the world’s richest man, Elon Musk.
The drop decreases Musk’s lead over Amazon’s Jeff Bezos to $75 billion as the world’s richest person. With a net worth of $256 billion, Musk still remains the richest man in the world by far.
The highly respected billionaire’s wealth plummeted significantly on Wednesday as Tesla shares declined. The overall market had a rough day, likely contributing to the stock’s slide with the car marker share price dipping by 3.4%
Growth tech stocks like Tesla have taken a beating in a tough start to 2022, as pessimism appears to be the dominant emotion so far. Since the company announced blowout fourth-quarter vehicle deliveries earlier in the year, the stock is down 5.3% year-to-date.
As investors take profits on some of the stocks that have outperformed the market in recent years, the stock’s decline on Wednesday is likely simply a continuation of further pressure on growth tech stocks.
Tesla’s upcoming earnings report is likely to attract investors’ attention. Despite reporting its fourth-quarter deliveries, the company provided limited information in its report.
Tesla will provide more information to investors when it reports its fourth-quarter results on Jan. 26.
Tesla’s guidance for 2022 vehicle deliveries will be watched closely when the company reports its fourth-quarter results. In order for the stock to continue justifying its pricey valuation, it is important that the company forecasts another year of 50%-plus growth in vehicle sales.
Despite being extremely wealthy, Musk owns little real estate or other valuables, opting instead for a modest lifestyle. The South African-born billionaire’s main residence is a small, fold-out house located at SpaceX’s base in South Texas. It has the size of a one-bedroom apartment.
Musk didn’t start Tesla, but he invested heavily in it early on. Today, he is the largest shareholder in Tesla, and he recently reported that his money entered first and left last. Musk plans to keep Tesla stock for many years despite selling some amount for tax bills.