Elon Musk First Person on Earth to Lose $200 Billion

Elon Musk has made history by becoming the first person to lose $200 billion from their net worth, according to the Bloomberg Billionaire Index. Prior to this, Musk was second only to Amazon’s Jeff Bezos in terms of personal fortune, with a net worth of over $200 billion which he achieved in January 2021.

How It happened:

The decline in Musk’s wealth can be attributed to a recent drop in Tesla’s shares. The electric car manufacturer’s shares have fallen significantly in recent weeks, with an 11% drop on December 27 alone. This has resulted in a decrease in Musk’s net worth to $137 billion.

In an attempt to boost sales, Tesla is currently offering a $7,500 discount on its two highest-volume models in the United States. The company has also reportedly reduced production at its Shanghai plant.

Musk’s net worth peaked at $340 billion in November 2021, and he held the title of the world’s richest person for consecutive months until he was overtaken this month by Bernard Arnault, the French business magnate and co-founder of LVMH.

The Twitter Acquisition:

In late October, Elon Musk acquired the social media platform Twitter for a cost of $44 billion. To finance this purchase, Musk sold a significant portion of his stake in Tesla, which is no longer his largest asset.

Musk’s decreasing wealth and increased interest rates

As one of the most influential figures in the business world, Elon Musk has not been shy about expressing his opinions on various topics, including the actions of the Federal Reserve. In recent months, he has taken to Twitter to criticize the central bank for raising interest rates at a rapid pace, arguing that it is not helping the overall economy.

Musk has pointed out that despite these rate increases, his own company, Tesla, has been executing at a high level and has not been affected by the changes. He believes that the real problem is the lack of control that companies like Tesla have over the Federal Reserve and its decisions.

In a recent podcast appearance, Musk further elaborated on his views on borrowed money and the importance of being cautious in a volatile market. He advises people to avoid taking on margin debt, which is a type of loan that allows investors to buy securities with leverage and instead suggests that they keep a cash reserve as a buffer against potential market downturns. He notes that extreme events can occur in a bear market and it is important to be prepared for them.

Overall, it seems that Musk is concerned about the potential negative impact of rising interest rates on the economy and is advocating for a more cautious approach in the current market conditions.