Shulou(Shulou.com)11/24 Report--

In January 2021, Elon Musk became the second person in history to have a personal fortune of more than $200 billion, just a few months after Jeff Jeff Bezos. Now, Tesla CEO has set his own first wealth "record": he has become the only person in history with a net worth loss of $200 billion.

The plunge in Tesla's share price in recent weeks, including an 11% drop on Tuesday, has caused 51-year-old Musk's wealth to plummet to $137 billion, according to the Bloomberg Billionaires Index. His wealth peaked at $340 billion on November 4, 2021 and remained the richest man in the world until it was overtaken this month by French tycoon Bernard Arnault, behind the luxury giant Louis Vuitton.

The "milestone" in which Mr Musk's wealth fell to $137 billion reflects how much Mr Musk's wealth soared during the epidemic of loose monetary policy during rising asset prices. Tesla's market capitalization exceeded $1 trillion for the first time in October 2021, joining the "trillion Club" of technology companies such as Apple, Microsoft, Amazon and Google's parent company Alphabet, even though its electric cars account for only a small portion of the entire car market.

Now, Tesla's dominant position in the electric vehicle field is being chased by competitors, which is the basis of his huge valuation. Tesla offered a rare $7500 discount to US consumers to speed up the delivery of its two top-selling models by the end of the year. Moreover, the company is said to have reduced production at its Shanghai plant. Meanwhile, as Tesla faces increasing pressure, Mr Musk has been focused on Twitter, buying the social media company for $44 billion at the end of October.

Tesla is no longer the biggest asset. According to the Bloomberg Billionaires Index, Tesla's share price has fallen so much that it has fallen by 65% in 2022. In addition, Musk has sold so many Tesla shares this year to help pay for his Twitter purchase, which has caused Tesla to no longer be his biggest asset. Mr Musk's stake in SpaceX, his rocket launch company, is worth $44.8 billion, surpassing his roughly $44 billion stake in Tesla (he still has options worth about $27.8 billion). According to a recent document, Mr Musk now owns 42.2 per cent of SpaceX.

Mr Musk himself shrugged off concerns about Tesla and repeatedly criticized the Fed for raising interest rates at the fastest pace in a generation on Twitter. "Tesla's execution is better than ever!" Mr Musk's biggest asset is Mr Musk himself. "We can't control the Fed," Musk wrote on Twitter on Dec. 16. That's the real problem. "

He has used his Tesla stake to borrow heavily before, but he recently warned that it is dangerous to borrow money in a panicked market. "I would really advise people not to have margin debt in volatile stock markets, you know, from a cash point of view, to be emergency," Musk said in an All-In podcast this month. "in a depressed market, something quite extreme can happen."

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