Sunday, May 28, 2023

Elon Musk drops from ‘$200 billion club’ as Tesla, Twitter tank

Elon Musk’s net worth has plunged below $200 billion as the share price of his electric car company Tesla continues to plummet and his stake in Twitter has gone underwater.

Musk, the world’s richest man, had a net worth of $193 billion as of Wednesday, according to the Bloomberg Billionaires Index.

However, since the start of the year, he has seen his wealth decrease by $77.6 billion, as Wall Street appears to be on the verge of a bear market.

Kasturi and other multi-billionaires have seen their fortunes shrink. The 50 wealthiest people, including Bill Gates, Jeff Bezos, Mark Zuckerberg and Bernard Arnault, lost a total of half a trillion dollars since the start of 2022.

Tesla shares fell nearly 7% on Tuesday as the company’s assembly line has been disrupted by the ongoing coronavirus lockdown in China.

On April 4, Tesla was trading at $1,145 per share. On that day Musk announced that he had bought a 9.2% stake in social media company Twitter.

Tesla investors are worried about the ongoing coronavirus lockdown in china that is disrupting production.
Reuters

Since then, however, the share price of both companies has declined. Tesla fell to an all-time low of $620.57 per share before closing Tuesday at $628.16.

Twitter hardly did better on Tuesday. Its share price fell 6% on Tuesday, closing at $35.76 – the lowest level since March 16.

Since the start of the year, Twitter stock is down 17.6% while Tesla shares are down 40.8%. Both companies’ losses have exceeded the S&P 500, which is down 17.5% so far.

Tesla shares have fallen about 41% since the start of 2022.
Tesla shares have fallen about 41% since the start of 2022.
Reuters. Through

Twitter’s shares have fallen 31.1% since closing at a high of $51.70 on April 25 — when the company’s board of directors accepted Musk’s $44 billion buyout offer.

According to Marketwatch, Musk bought his 9.2% stake in Twitter, or 73.12 million shares, at a weighted average price of $36.16.

At the current stock price, Musk would lose $40.7 million on his investment. This is significantly faster than the increase of $1.14 billion from the closing price of $51.70 on April 25.

Musk’s acquisition of Twitter has elevated his public profile, though it came with a price. Last week, it was revealed that Musk’s space travel firm, SpaceX, paid $250,000 to settle sexual misconduct claims brought by a flight attendant in 2016.

World Nation News Desk
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