The richest man in the world, Elon Musk has lost $30.5 billion in the last 27 days of 2024 putting his current net worth below $200 billion.
Data on Bloomberg Billionaire Index showed that as of January 1, 2024, Telsa’s CEO, Musk was worth $299 billion but as of the last market trade, January 26, 2024(Friday) his net worth had dropped to $199 billion showing a 13.3% drop.
Musk’s primary source of wealth is closely tied to his stake in Tesla, the world’s most valuable carmaker, renowned for its electric vehicles and home solar batteries.
Additionally, Musk serves as the Chief Executive Officer of SpaceX, a prominent rocket manufacturer entrusted by NASA for space station resupply missions, and holds ownership in the social networking company X, previously known as Twitter.
The fluctuations in Musk’s net worth draw attention to the performance of his companies, particularly Tesla, as they navigate the challenges of the financial year.
Why Elon Musk is losing money?
While Tesla experienced a blockbuster 2023 with its shares more than doubling in 12 months, 2024 is proving challenging, marking the worst start for Elon Musk’s electric vehicle company.
- The company’s market valuation plummeted by over $94 billion in the first two weeks of the year, attributed to a series of adverse developments, including a policy reversal on electric vehicles by Hertz Global Holdings Inc., further price reductions for Chinese-manufactured cars, and indications of escalating labor costs.
- The negative trend for Tesla is compounded by a slowdown in electric vehicle demand, particularly in the United States.
- Then on Thursday, Tesla shares slid down further by 13%, directly influenced by the company’s fourth-quarter earnings report falling short of market expectations. This reported earnings miss resulted in a substantial single-day loss of over $18 billion in Musk’s net worth in a single day.
The depreciation in Tesla’s stock showed fourth-quarter earnings report that the revenue stood at $25.17 billion, slightly below the estimated $25.87 billion. The repercussions extended beyond Tesla, impacting other American electric car manufacturers, with Rivian and Lucid witnessing 1% and 6% declines in their respective stock values on the same day.
- Additionally, Elon Musk’s foray into the social media domain with the acquisition of X, formerly known as Twitter, has encountered challenges. The platform has witnessed a significant decline, with a reported 71% loss in value since Musk’s acquisition in October 2022 for $44 billion.
- Fidelity, a mutual fund with stakes in X Holdings, marked down the value of its shares by 71.5%, estimating X’s current value at approximately $12.5 billion. This highlights the complex dynamics impacting Musk’s diverse business ventures.
Elon Musk’s stake in Tesla stands at approximately 13%, as per a regulatory filing from April 2023, supplemented by around 304 million exercisable stock options from a 2018 compensation package.
In the space exploration domain, Musk’s SpaceX holds an estimated value of about $180 billion based on a December 2023 tender offer, with Musk commanding a significant 42% stake in the closely held company.
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