Advertisement
Canada markets open in 5 hours 5 minutes
  • S&P/TSX

    22,265.05
    -108.35 (-0.48%)
     
  • S&P 500

    5,306.04
    +1.32 (+0.02%)
     
  • DOW

    38,852.86
    -216.74 (-0.55%)
     
  • CAD/USD

    0.7322
    -0.0007 (-0.10%)
     
  • CRUDE OIL

    80.45
    +0.62 (+0.78%)
     
  • Bitcoin CAD

    92,552.75
    -165.32 (-0.18%)
     
  • CMC Crypto 200

    1,457.04
    -27.66 (-1.86%)
     
  • GOLD FUTURES

    2,351.40
    -5.10 (-0.22%)
     
  • RUSSELL 2000

    2,066.85
    -2.82 (-0.14%)
     
  • 10-Yr Bond

    4.5420
    +0.0750 (+1.68%)
     
  • NASDAQ futures

    18,833.75
    -106.75 (-0.56%)
     
  • VOLATILITY

    14.03
    +1.11 (+8.59%)
     
  • FTSE

    8,234.56
    -19.62 (-0.24%)
     
  • NIKKEI 225

    38,556.87
    -298.50 (-0.77%)
     
  • CAD/EUR

    0.6752
    +0.0005 (+0.07%)
     

Elon Musk's wealth has crashed by over $175 billion from its peak as Tesla's problems pile up

Elon Musk
Elon Musk is CEO of Tesla.Brendan Smialowski/AFP/Getty Images
  • Tesla shares have tumbled 66% from their peak as investors gear up for a growth slowdown.

  • The stock drop has fueled an estimated $176 billion decline in Elon Musk's net worth.

  • The Tesla CEO is now worth about $164 billion, down from $340 billion in November 2021.

Tesla's mounting troubles have dealt a heavy blow to Elon Musk's net worth.

In November 2021, the Tesla CEO held the top spot on the Bloomberg Billionaires Index, and seemed untouchable with an estimated fortune of $340 billion. He was more than three times richer than Warren Buffett at that point.

However, Musk's net worth has plunged by about $176 billion since then to $164 billion at Monday's close. The key driver has been Tesla stock, which has tumbled from a split-adjusted peak of $415 in 2021 to $142 — a 66% decline.

ADVERTISEMENT

The share-price slump has slashed Tesla's market capitalization from north of $1.2 trillion to below $450 billion. Musk's net worth has taken a big hit from the decline because his 13% stake in the automaker makes up a big chunk of his wealth.

Musk's start to this year has also been dismal relative to his peers in the 12-digit club. He topped the Bloomberg rich list with a $229 billion fortune in January, but his net worth has crashed by $65 billion, or 28%, since then.

The Tesla and SpaceX CEO now ranks fourth in the wealth rankings, behind LVMH's Bernard Arnault, Amazon's Jeff Bezos, and Meta's Mark Zuckerberg.

Moreover, Musk is the only one of the world's 11 richest people whose net worth has declined this year. He's lost more money on paper than anyone on the list has gained, including Zuckerberg who's up $43 billion.

Tesla's stock has tumbled in recent months due to mounting concerns about the company. Musk told employees this month that more than 10% of the company's global workforce would be laid off, signaling demand for EVs is faltering.

The automaker delivered fewer cars than expected to customers last quarter, and has made price cuts that threaten to erode its profit margins.

Moreover, Musk is fending off fierce competition from Chinese rivals like Buffett-backed BYD, and has repeatedly underscored the painful impact of higher interest rates on customer demand.

Musk's fortune isn't completely tied to Tesla. He also owns an estimated 42% stake in SpaceX, the space exploration company valued at $180 billion in December, and a roughly 79% stake in X after he acquired Twitter in 2022 and rebranded it last year.

Read the original article on Business Insider