Elon Musk has burned through $200 billion in just fourteen months
This is called a big loss. Elon Musk became a few days ago the first person in history to see his fortune melt by 200 billion dollars according to the ranking of Bloomberg. The capital of the multi-billionaire is now estimated at 137 billion dollars when it reached 340 billion dollars in November 2021. In 2022 alone, the founder of SpaceX lost 133 billion dollars in particular due to the collapse of Tesla stock that saw the value it has fallen from 65% in 2022.
In January 2021, Tesla’s eccentric boss became, a few months after Jeff Bezosthe second personality to have accumulated a fortune of over 200 billion dollars.
Tesla, collateral victim of Twitter takeover
This fall is explained by the fall of Tesla’s title. To the source, the rise of competitors that increasingly threaten societyElon Musk in the electric car market, but more importantly, taking over Twitter by its boss.
A new activity that has kept him busy to the point of worrying investors who fear declining sales at Tesla. The latter also suffers from a popular image in half-mast due to the positions taken by Elon Musk and the moderation policy he has put in place within the social network, which once again allows conspiracy accounts and propagators of misinformation or hateful content. Tesla needs one “leader who can guide him through the storm” and not boss “who’s paying attention to Twitter”said Dan Ives, of Wedbush, in a note published on Tuesday. He added that too “Musk has lost all credibility in the investment community”stir up “Promise Crucified” in sharing sales, “The Twitter Fiasco” and “political controversies” on the platform.
The businessman also sold more than $39 billion in Tesla shares since November 2021, the bulk intended for the acquisition of the social network for $44 billion, including $27 billion in personal contributions. Not to mention that car production is currently suspended at the Shanghai plant for a longer period than initially planned, according to AFP.
As a result, Tesla’s stock lost value 60% since April, which is more than Nasdaq (-11%). And more than half of that decline has been since early November, proving the personal impact ofElon Musk. The company is still worth about 500 billion dollars, but it’s a long way from the more than 1,200 billion dollars at the beginning of the year. For reminder lpart of the group jumped over 700% in 2020 then 50% in 2021.
However, Elon Musk dismissed concerns about Tesla, preferring to point the finger at the Fed’s action that has fueled rate hikes in recent months: “Tesla works better than ever! We do not control the Federal Reserve. That’s the real problem here (…) I still predict that in the long run, Tesla will be the most valuable company in the world”he tweeted in mid-December. In its defense, the manufacturer claims to have increased its deliveries by 45% in the first three quarters, despite supply problems, and generated nearly $9 billion in revenue during that period despite steep increases in costs. But this falls short of the long-term goal of increasing deliveries 50% Every year.
Frenchman Bernard Arnault in pole position
Twitter’s new boss’s capital loss makes FFrench. Bernard Arnault, more cautious than the American multi-billionaire, has a fortune now estimated at 162 billion dollars against 137 billion dollars for Elon Musk. The CEO of LVMH, the first market capitalization of Bedroom 40 with $346 billion, suffered only a slight decline this year. The action behind the bags Louis Vuitton lost about 6% since January 2022, a better performance than Tesla.
Unlike tech, the turnover of luxury stocks continues to be good, boosting the fortunes of the boss of the world’s leading group. By 2022, the market should be worth 1,400 billion euro, increase of 13% over a year, at constant exchange rates.
Exceeded expectations, LVMH (which owns Louis Vuitton, Dior and Sephora, Bulgari and Tiffany) recorded 19.755 billion euros in sales between July and September (+19% compared to the same period of 2021). completely after recovery Covid, consumers have actually kept their luxury purchases. Sales were also driven by its already wealthy clients in a hurry of its fashion brands, including Americans taking advantage of the strong dollar to visit European stores. Finally, in China, LVMH benefited from an improvement in its activities thanks to the easing of restrictions anti Covid19.
(In AFP)
