Elon Musk’s losses for 2022 topped $100bn (roughly R1.7-trillion) as shares of Tesla dropped to the lowest level in two years.
The Tesla co-founder is still the world's richest person with a fortune of $169.8bn (roughly R2.94-trillion), according to the Bloomberg Billionaires Index, even after seeing his net worth shrink by $8.6bn (roughly R148.8bn) on Monday. He’s down $100.5bn (roughly R1.74-trillion) this year — the most of anyone on the wealth index — after peaking at $340bn (roughly R5.9-trillion) a little more than a year ago.
The electric-car maker comprises the bulk of his fortune and is struggling with burgeoning Covid-19-related restrictions in China, its largest market outside the US. The Austin, Texas-based firm recently announced a recall of more than 300,000 cars due to faulty taillights, while also dealing with supply-chain snarls and soaring raw material costs.
Tesla shares dropped 6.8% to $167.87 in New York trading on Monday — the lowest since November 2020 — and are down 52% this year. That compares with a 29% decline in the tech-heavy Nasdaq 100 Index.
Musk, 51, has also been preoccupied with Twitter, the social-media network he acquired last month for $44bn (roughly R761.4bn). The company has lost about 60% of its workforce since Musk took over, with the latest round of layoffs coming on Sunday. Investors have been questioning whether the billionaire is spreading himself too thin among his various high-profile ventures.
Tesla’s dependence on Musk is listed as a risk factor in its security filings, highlighting that “though Mr Musk spends significant time with Tesla and is highly active in our management, he does not devote his full time and attention to Tesla.”
— With assistance from Jack Witzig.
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