Elon Musk, whose net worth fell by more than $100 billion in 2022, has been displaced as the world’s wealthiest individual by Bernard Arnault, CEO of Louis Vuitton’s parent company LVMH.
According to the Bloomberg Billionaires Index, Elon Musk’s current net worth is $137 billion, excellent for second place on the list of the worlds’ richest after LVMH (LVMHF) Chairman Bernard Arnault. Musk’s net worth peaked at $340 billion in November 2021. Musk is the first person in history to lose $200 billion in fortune.
There are several explanations for his massive loss, and there are numerous options. Buying the social networking platform for 54 billion dollars didn’t improve his net worth much, and his other firms, like Tesla and Star link, didn’t assist either.
Buyers are quickly losing interest in purchasing new Tesla’s, as seen last month when the firm offered an unusual deal to clear out inventory. Tesla provided two refunds to consumers who took possession of a car before the end of the year, first providing a $3,750 discount and then doubling the incentive to $7,500 with two weeks remaining in 2022.
Tesla started the year with a market capitalization of $386 billion, which was far higher than its car rivals but far lower than the tech titans — Apple (AAPL), Microsoft (MSFT), Google (GOOGL), and Amazon (AMZN) — with which it was compared a year before.
Another major factor for Elon Musk’s wealth decline is inflation and the stock market meltdown, as the majority of Musk’s fortune is invested in Tesla (TSLA), whose stock fell 65% in 2022. Tesla (TSLA) demand fell as competition from established automakers in electric vehicles increased last year.
Tesla’s stock may recover, and Elon Musk may reclaim his title as the world’s richest person. However, Musk’s image as a genius suffered significant harm in 2022, almost as much as his personal riches.
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