Musk's Net Worth Slips Below $200B As Tesla Shares Dip

After Tesla's stock hit a 52-week low in early morning trading on Tuesday, CEO Elon Musk's net worth dropped below $200B for the second time since Oct. 1, 2021 — it also briefly fell to $199B in May 2022 before rebounding.

Musk's Net Worth Slips Below $200B As Tesla Shares Dip
Image credit: Getty Images [via Forbes]

Facts

  • After Tesla's stock hit a 52-week low in early morning trading on Tuesday, CEO Elon Musk's net worth dropped below $200B for the second time since Oct. 1, 2021 — it also briefly fell to $199B in May 2022 before rebounding.
  • Amid news that the electric vehicle maker recalled 40k vehicles because of a power-steering flaw, Tesla shares — of which Musk owns about 17% — fell 2.93% to $191.30, dropping his net worth to $197.4B as of Tuesday's closing.
  • Tesla stock began to decline last month after Musk divested $15B in pursuit of his Twitter buyout, which he closed with $13B in loans and a $33.5B equity agreement last month. Some investors believe the billionaire has stretched himself too thin as the company faces rising competition.
  • Musk sold almost $22B worth of Tesla shares in 2021, with the stock rising more than 50% that year. This year, with Tesla facing losses, Musk sold $8B in shares in April, around $7B in August, and $3.95B since purchasing Twitter.
  • External factors have reportedly also taken a toll on Tesla's performance, including Beijing's zero-COVID policy, which has disrupted production in China, where the company generates approximately 25% of its sales.
  • Despite the dip, Musk is still reportedly the richest person in the world, with Moët Hennessy Louis Vuitton owner Bernard Arnault coming in second with a net worth of roughly $40B less.

Sources: Forbes, Business Insider, Reuters, CNBC, and Gulf.

Narratives

  • Narrative A, as provided by FOX News. It seems Musk took on his new Twitter venture without being fully prepared. Investors look for a steady hand at the helm of the companies they put money into, and right now, Musk looks lost in the world of tech platforms while neglecting his other companies.
  • Narrative B, as provided by Fortune. At best, Musk's Twitter purchase is a calculated business strategy. At worst, it's an attempt to dominate the news cycle. Either scenario will likely bring success to Musk and his companies, despite the seemingly feeble start. While some might say he's stretched too thin, it would be foolish to think he doesn't have some tricks up his sleeve to boost all three of his companies' valuations through his new social media platform.

Predictions