Tesla shares have evaporated more than $600 billion in market value since mid-December. The decline cuts the net worth of Elon Musk by about $140 billion.
The epic decline in Tesla stock has eliminated more than $600 billion in market value since mid-December.
The decline caused CEO Elon Musk to lose about $140 billion in net worth. He should be fine. According to Barron’s mathematics, he is still worth about $420 billion. However, investors may want to pay attention to changes in his wealth distribution.
After about 20% of Tesla shares fell to Thursday’s trading in the past five days, Musk’s stake in Rocket Maker SpaceX, artificial intelligence companies XAI and Social-Media Platform X now looks more valuable than his stake in the electric car maker. In the past, Tesla’s stocks usually represented Musk’s wealth’s lion share.
Of course, measuring wealth is more important than science. Musk has no $420 billion in the bank. His net worth is based on the unvaluation of his Tesla stock and the estimate of the value of his shares in a private company.
When his company raises funds (can be a shares of Musk), the valuation of these people can change, and they can change pricing data from platforms designed to trade stocks from private companies. Sometimes, Wealth is expected to discount his private bet, which is difficult to convert into cash. Sometimes it is estimated that attempts will be made to include any potential liability that Musk may have.
Musk’s net worth does not have a real number. According to recent data, SpaceX is worth about $350 billion, XAI is worth $75 billion and X is worth $44 billion. Musk’s shares in these three are worth up to $220 billion. Musk Tesla’s stock’s value fell to about $200 billion.
For investors, it is hard to say what changing distribution means. In the past, Musk’s wealth came from his auto companies, which comforted investors. The emergence of gains in Xai and SpaceX changes things.
Changes may make it more difficult to prioritize Musk.
However, this has never been an easy task. Musk said he wasn’t always motivated by money. He famously told CNBC’s David Faber that a story about the princess bride that when Faber presses Musk, it is possible to shut down Tesla buyers in his social media habits.
The film has a scene from 1987 in which Mandy Patinkin plays swordsman Inigo Montoya catches up with the man who killed his father. “Montoya said: ‘Give me money. Give me strength. I don’t care,'” Musk said, defining the film. “What I’m going to say is what I want to say, if that’s the consequence of the loss, that’s it,” added the Tesla CEO.
Now, Musk has more mats. If he loses money on Tesla, he has several other companies that provide ballast for his bank balance.
Listings for Tesla stock rose 1.2% to $294.30, while S&P 500 and Dow Jones Industrial Average Futures rose 0.5% and 0.3%, respectively.
