Elon Musk, the renowned tech billionaire, has recently achieved a rather dubious distinction – he has broken the world record for the largest loss of personal fortune in history, according to a report by Guinness World Records. As of January 2023, Musk’s net worth has plummeted from a staggering $320 billion in 2021 to around $138 billion. Some sources even claim that the figure might be closer to $200 billion.
The primary reason behind Musk’s significant financial decline can be attributed to the poor performance of Tesla’s stock. The global records database cited data from Forbes, stating that Musk’s total losses far surpass the previous record set by Japanese tech investor Masayoshi Son in 2000, which stood at $58.6 billion (£47 billion).
In December, Musk lost his position as the richest person in the world to Bernard Arnault, the CEO of French luxury goods conglomerate LVMH, which owns the renowned fashion label Louis Vuitton. As of January 12, Forbes estimated Arnault’s net worth at $203.7 billion (£168 billion) compared to Musk’s $146.5 billion (£121 billion).
The majority of Musk’s fortune is tied to Tesla stock, the value of which witnessed a massive 65% decline in the tumultuous year of 2022, according to the Guinness World Records report. This decline was further accelerated after Musk purchased Twitter for an estimated $44 billion (£36 billion). Worries about weakening demand and logistical challenges have impeded deliveries for Tesla, the world’s most valuable automaker.
Despite these setbacks, Musk remains confident in the long-term strength of Tesla and the overall market. As the year ended on December 30, 2022, Musk tweeted, “Long-term fundamentals are extremely strong. Short-term market madness is unpredictable.”
Elon Musk’s journey serves as a reminder that even the most successful individuals can face significant challenges and setbacks. However, with his unwavering confidence, it will be interesting to see how Musk navigates these hurdles and continues to push the boundaries of innovation in the tech world.
