While Tesla shares plummeted, Musk lost his crown as the richest in the world

Elon Musk is no longer the richest man in the world Bloomberg Billionaire Indexlike Tesla (TSLA) share continue to fall.

Musk moves up to second place behind LVMH CEO Bernard Arnault as his net worth plummets $107 billion through 2022. Musk is now worth $164 billion, while Arnault is worth $171 billion, as of Dec. 14.

Behind Musk is Indian industrialist Gautam Adani with $125 billion, followed by Amazon CEO Jeff Bezos and Microsoft founder Bill Gates both at $116 billion. Rounding out the top 10 are Berkshire Hathaway CEO Warren Buffett, Oracle Co-Founder Larry Ellison, former Microsoft CEO Steve Ballmer, Indian businessman Mukesh Ambani and Google Co-Founder Larry Page.

Musk’s net worth is largely tied to Tesla stock, meaning that what makes him the world’s richest man – Tesla’s market capitalization has exploded in recent years – is also what makes him the world’s richest man. knocked him out of the lead when Tesla’s market cap fell from 1 trillion dollars in October 2021 to about $500 billion by the end of Tuesday.

Musk’s Compensation Package as CEO of Tesla, his total assets are $56 billion and allows him to buy 1% shares of the EV giant at a deep discount every time he hits the most business goals. determined.

Tesla’s bad year 2022

Tesla shares are down more than 50% year-to-date amid downside catalysts including China’s no-COVID policyMusk’s acquisition of Twitter and increase race, contest in the EV space.

China has implemented a COVID-free policy, which means a strict lockdown to prevent any further infections. However, that also means closing Tesla’s gigafactory in Shanghai. accounting for about 52% of the company’s global deliveries by 2021. (China is the world’s largest auto market.)

“You are starting to see some demand cracks,” Wedbush Senior Analyst Dan Ives speak about Tesla. “I don’t believe the long-term story in China is thrown out the window, I just think they’re navigating some real, first in years, some growth challenges, they’re bearish. , … some supply chain cuts, and now, we have to see not only in Q4 but 2023, 2 million units, that’s the global limit.”

Ives eliminate Tesla off Wedbush’s “Best Ideas” list and slashed its target price from $300 to $250.

“In a dark comedy with Twitter, Musk has essentially tarnished the Tesla story/stock and is starting to potentially impact the Tesla brand with the ongoing Twitter shipwreck disaster. come out,” Ives Written in a note at the time.

The note also questioned Musk’s leadership amid his turmoil $44 billion to acquire Twitter. Some analysts view Musk as owning and leading Twitter as a distraction for Tesla.

Tesla CEO Elon Musk arrives to see the construction site of the new Tesla Gigafactory on September 3, 2020 near Gruenheide, Germany.  (Photo by Maja Hitij/Getty Images)

Tesla CEO Elon Musk arrives to view the construction site of the new Tesla Gigafactory on September 3, 2020 near Gruenheide, Germany. (Photo by Maja Hitij/Getty Images)

“Perception is reality,” said Alyssa Altman, transportation and mobility team leader at Publicis Sapient, told Yahoo Finance last month. “Everybody saw Elon Musk turn Twitter upside down overnight and believe he’s going to lose Tesla and his other complex businesses.”

While having someone take over his Twitter handle would free up Musk and allow him to shift his focus back to Tesla, one Tesla board member recently said that Musk has found a potential successor to lead the electric-car giant. After the news, stocks to hit lowest level since November 2020.

Tesla has also struggled with more competition in the electric vehicle industry.

Company Still the leader in the global EV market, but established automakers like GM, Ford and Volkswagen are threatening that position.

GM Vice President of Electric Vehicle Ecosystem Hoss Hassani recently said Yahoo Finance Live that his company’s vision is “to have everyone in an electric car.”

Meanwhile, Ford has enjoyed great success with its electric vehicle products, as the company report Sales are up more than 100% in November 2022, and it claims that it now has an 8.6% share of the electric vehicle market.

Adriana Belmonte is a reporter and editor on healthcare policy and politics for Yahoo Finance. You can follow her on Twitter @adrianambells and contact her at [email protected]

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