With Tesla shares heading for its worst annual performance ever, it appears billionaire Elon Musk’s losses won’t stop there.
After Musk, who was number one in the world in terms of wealth, lost this position to French billionaire Bernard Arnault, it seems that Gautam Adani, the richest man in India and Asia, is about to overthrow him.
Elon Musk’s losses come after large and unprecedented declines plaguing Tesla shares, which have lost about $864 billion since reaching their all-time high on Jan. 3, 2021.
Tesla shares are on track for their worst annual performance ever after dipping below its lowest price in more than two years, towards $120 a share levels.
Musk’s Luck
Since the decline in Tesla shares, however, the losses of billionaire Elon Musk continue, who is about to give up second place among the world’s rich.
According to the Forbes 400 index of the wealthy, Louis Vuitton founder Bernard Arnault ranks first with a fortune of more than $160 billion, having lost $19 billion since the start of this year 2022.
And American billionaire Elon Musk, who is second with a fortune of less than $140 billion, comes in having lost $132 billion since the beginning of this year.
As Musk’s wealth has declined from its all-time high of $341 billion to nearly $200 billion, Elon Musk has lost nearly 59% of his total wealth.
And in third place comes fierce contender, the richest man in Asia and India, billionaire Gautam Adani, whose wealth has increased by more than $34 billion this year, and now stands at nearly $124 billion. dollars.
Tesla retires
With today’s open, another sell-off in Tesla stock on Tuesday could plunge it to its lowest level in more than two years as the EV maker drops to the 13th most valuable company in the S&P 500.
Shares of the electric-car maker fell 3.3% on its seventh consecutive loss in premarket trading, with latest trading prices indicating a market value of about $375.96 billion, down from $388.88 billion as of Friday’s close.
Losses of 70%.
That would put Tesla’s market value below retailer Wal-Mart, which was $387.72 billion on Friday, and below JPMorgan, which was $385.07 billion.
Tesla now sits just above semiconductor maker Nvidia, which had a market cap of $374.07 billion on Friday.
reduce production
Tesla plans to execute a reduced production schedule at its Shanghai plant in January, extending the reduced production that began this month into next year, according to an internal schedule reviewed by Reuters.
Tesla will cut production for 17 days in January between Jan. 3 and Jan. 19 and halt production of electric cars from Jan. 20 to Jan. 31 for an extended Chinese New Year holiday, according to the plan.
Tesla did not specify a reason for the production slowdown in its production plan, and it also wasn’t clear whether work would continue outside the factory’s Model 3 and Model Y assembly lines during the planned downtime.
It was not Tesla’s established practice to shut down operations for an extended period of time over the Chinese New Year, and Tesla did not immediately respond to a Reuters request for comment.
56% in two months
Tesla shares fell 5.8% to $116 in premarket trading, while the stock is down 56% since early October.
Investors have become concerned about demand, including from China, the burden of CEO Elon Musk’s Twitter involvement, and his recent sales of Tesla (NASDAQ:TSLA) stock.
Tesla suspended production at its Shanghai factory on Saturday, ushering in a firm plan to halt most work at the factory in the last week of December, according to reports.
Tesla’s latest production cuts in Shanghai come amid a growing wave of infections after China canceled its Covid-free policy earlier this month.
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Sharp decline in sales
Tesla offered an extra incentive for buyers to take possession of the vehicles in December, and the company slashed the prices of its Model 3 and Model Y vehicles by up to 9% in China, as well as subsidizing insurance costs.
Brokerage China Merchants Bank International (CMBI) said in a report released Tuesday that Tesla’s average daily retail sales in China from December 1 to December 25 fell 28 percent from a year earlier.
Brokerage China Merchants Bank International said Tesla recorded 36,533 retail sales in China from Dec. 1 to Dec. 25.
The brokerage, which tracks weekly data on auto retail sales in China, said sector-wide sales rose nearly 15% by the same amount through Dec. 25.
