The Tesla CEO’s fortune is estimated at $181 billion.
(Photo: via REUTERS)
san francisco Tesla boss Elon Musk is no longer the richest person in the world, reports US magazine Forbes on Tuesday. The magazine now estimates the fortune of the 51-year-old at $ 181 billion.
In particular, the fall in value of Tesla shares also causes Musk’s assets to collapse. The company’s shares had lost more than six percent in value on Monday alone. According to the analysis company FactSet, Musk currently holds around 14.11 percent of the shares in the electric car manufacturer.
A Frenchman is new at the top of the Forbes list for the first time: Bernard Arnault, the 73-year-old CEO and co-owner of the luxury group LVMH, has total assets of 186 billion dollars according to the US magazine – and thus overtakes Musk.
Musk’s net worth had already fallen below $200 billion on November 8th. Because the billionaire’s role in the takeover of Twitter also scares investors in the electric car manufacturer Tesla. Since the deal was closed, the stock has fallen by 26 percent, compared to the beginning of the year the value of Tesla shares has even more than halved.
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The fall in the value of his shares in Tesla has seen Musk’s net worth fall by about $70 billion since he bid for short-messaging service Twitter in April. In addition to his shares in Tesla, Musk also owns 40 percent of the space company SpaceX, which was valued at $125 billion in June 2022.
At the end of October, Musk bought the text messaging service for $44 billion, funded by $13 billion in loans and a $33.5 billion equity commitment. Musk himself had admitted that the price was probably higher than the current value of the company.
“Every black eye for Musk also hits Tesla stock”
With the takeover, Musk had at least temporarily assumed the role of CEO on Twitter. Since buying the short message service, he has laid off more than half of the company’s 7,500 employees.
Several studies suggest that significantly more hate postings were registered on Twitter than before the takeover. This also frightened advertisers: numerous companies had stopped their ads on Twitter as a result.
Twitter appears to be tying up Musk’s complete attention, and that’s a problem for Tesla, said Wedbusch Securities analyst Dan Ives. “Ultimately, Musk is Tesla and Tesla is Musk,” Ives said. The many controversies that Musk produces on Twitter also radiated to Tesla.
There is also concern that Musk could sell more Tesla shares to offset losses on Twitter. “Any black eyes on Musk will be reflected in the eyes of the stock market in Tesla stock,” Ives said.
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