Elon Musk‘s wealth has continued to decline at record levels after he lost the title of the world’s richest man.
After Tesla shares suffered their biggest one-day decline since October, his net worth dropped by $8.8 billion on Tuesday.
The latest selloff worsens Musk’s problems after he earlier lost the title of the world’s richest man to luxury magnate Bernard Arnault on December 13.
Troubles for Musk: Musk’s losses in 2022 have now hit $140 billion, surpassing his gains from 2021, when his fortune rose to one of the largest in recorded history.
According to the Bloomberg Billionaires Index, the Tesla CEO’s net worth has dropped to its lowest level in more than two years.
Tesla’s share declines: Tesla posted its worst day in eight months on Tuesday as shares of the business dropped to their lowest level in more than two years.
The electric carmaker has lost more than half of its value since the start of October. Investors worry that Musk is spending too much time on Twitter now that he is the company’s CEO and owner.
Since reaching a record high in November 2021, Tesla stock has dropped by 73%. More than twice as much as the Nasdaq has fallen, the stock is down 69% in 2022.
- According to a regulatory filing from December 2022, Musk owns around 13% of Tesla. Additionally, he has 279 million exercisable stock options left over from his massive grant from 2018.
- Musk is selling large quantities of Tesla stock as Twitter is losing money. Musk reportedly sold an additional 22 million Tesla shares in mid-December, for a total transaction value of around $3.6 billion. On social media earlier this year, Musk informed his countless fans that he had “no additional TSLA sales planned” after April 28.
- Musk announced on Twitter Spaces on December 22 that he would not sell any stock for 18 to 24 months following his most recent stock sale. Musk claimed in a Twitter exchange with a Tesla shareholder that “people would increasingly move their money out of equities into cash, causing markets to decline” as a result of the Federal Reserve raising interest rates.
- Investors have not been greatly pacified by his statements. According to FactSet, trading volume on Tuesday exceeded 201 million shares, making it the second-highest day of the year after Dec. 22.
- The tech billionaire is perceived as ‘asleep at the wheel’ from a leadership standpoint at a time when Tesla is lowering prices and inventory is starting to develop globally in the face of a predicted global recession.
- The company’s shareholders want Musk to redouble his efforts to stabilize the business that makes up the lion’s share of his fortune.
