New YorkCNN — Elon Musk’s wealth destruction has become historic.
The CEO of Tesla (TSLA), SpaceX and Twitter is worth $137 billion, according to the Bloomberg Billionaires Index, good enough for second place on the list of the world’s richest behind LVMH (LVMHF) Chairman Bernard Arnault. But at its peak in November 2021, Musk’s net worth was $340 billion.
That makes Musk the first person ever to lose $200 billion in wealth, Bloomberg reported last week.
The bulk of Musk’s wealth is tied up in Tesla (TSLA), whose stock plunged 65% in 2022. Demand for Tesla (TSLA)s weakened as competition in electric vehicles from established automakers surged last year. The company missed its growth targets and scaled back production in China.
Evidence of car buyers’ sinking interest in Teslas became apparent last month after the company announced a rare sale in a bid to clear out inventory. Tesla offered two rebates for buyers taking delivery of a vehicle before the end of the year, initially offering a $3,750 discount then doubling the rebate to $7,500 with two weeks left in 2022.
Investors were rattled by the rebates, sending the stock plunging 37% in December.
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Article URL : https://www.cnn.com/2023/01/02/investing/elon-musk-wealth/index.html