Jakarta, CNBC Indonesia – Elon Musk recently lost a lot of his fortune. This comes as Tesla’s share price plunged to its lowest level this year, which saw him lose $12.3 billion of his net worth.
After previously dropping 6% on Wednesday, May 18, Tesla shares are now down 28% since Musk launched his bid to buy Twitter on April 14. This means Musk’s total net worth has fallen by $49 billion since he first made a $44 billion bid to buy Twitter.
The decline in Tesla shares coincided with a deeper market fall, which saw the S&P 500 drop 4% for the day. But Tesla also faced a unique headwind. Tesla removed from S&P Sustainability ESG Index due in part to claims of racial discrimination and poor working conditions at its factory, in California.
Musk took to Twitter to say “ESG is a scam,” adding that S&P had “lost their credibility”. The world’s richest man also said that he would shift his political support from Democrats to Republicans.
“In the past I’ve voted for Democrats, because they are (mostly) the party of goodness,” Musk said.
“But they have become a party of division & hatred, so I can no longer support them and will vote Republican.”
Still the Richest Man
Even though his fortune has fallen by the trillions, Musk is still the richest person in the world, according to the Bloomberg Billionaires Index. His current fortune is estimated at US$210 billion – the equivalent of 1% of US GDP and 3 million times more than the average US household income.
But Elon Musk’s net worth has fallen far short of the peak, around $340 billion, which he reached in November 2021.
Since the start of the year, Musk’s fortune has fallen by 22.4%, or $60.4 billion, only to trail behind Binance CEO Changpeng Zhao, who’s down $81 billion this year, and Jeff Bezos, who has lost $62 billion this year.
Musk’s fortune began to plummet after he first bought a 10% stake in Twitter on April 4. By the time he made the official offer to buy Twitter on April 14, Tesla’s stock had fallen 14%. On the day Twitter accepted Musk’s offer to buy, Tesla shares fell another 12%, as market watchers feared Musk would not have enough cash to fund the Twitter buyout and would sell Tesla shares to fund the project. He is known to sell for US $ 8.5 billion.
Tesla’s recent drop in share price has erased most of the gains the company made during the pandemic, which saw its market cap rise from $117 billion in January 2020 to $1 trillion in October 2021. Tesla’s market cap is currently at $US. 735 billion.
And as Elon Musk’s fortune plummeted along with Tesla’s stock, the company he was trying to acquire also sank. Twitter shares are trading 36 percent below Musk’s $54.20 offer, at $36.85 per share.
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Musk annexed Twitter, this is the motive
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(hsy / hsy)
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