Why Elon Musk’s Net Worth Dropped $100 Billion This Year? Here’s The Real Reason

Elon Musk’s net worth has decreased to $195.6 billion. On Tuesday, Musk’s net worth decreased and reached its lowest level of the year. Elon Musk Net Worth Dropped $100 Billion This Year.

Except for a small dip to $199 billion in May of this year, this is the second time since Oct. 1, 2021, that his net worth has fallen below $200 billion, according to Forbes.

Musk used to be worth more money, but his net worth is still enormous and secures his title as the world’s richest man. According to Forbes, his estimated net worth in January was $304.2 billion. As Tesla stock rose at the time, his net worth climbed by nearly $32.6 billion.

Of course, it was before Musk started his purchase of Twitter in April. As a legal dispute with Twitter loomed, he sold approximately 8 million Tesla shares, valued at $7 billion, in August. After Musk attempted to renege on their acquisition deal, Twitter filed suit to enforce the terms. The corporation was then accused of fraud, breach of contract, and breaking a securities law, according to Musk’s countersuit.

Elon Musk Net Worth Dropped $100 Billion
Elon Musk Net Worth Dropped by $100 Billion

The case was put on hold by the judge to allow the transaction to go through, and last month, Musk paid $44 million to legally acquire the business.

It was a turbulent takeover of Twitter. Despite having stated that he was “done selling Tesla stock,” Wedbush analysts claim that Musk recently sold an additional $4 billion in stock to bridge the deal’s shortfall.

And this week, according to documents filed with the Securities and Exchange Commission, he sold an additional 19.5 million Tesla shares over the course of three days, for a total value of $3.9 billion, Forbes writes. Since April, he has now sold shares of Tesla worth $19.3 billion. His net worth fell as a result of that and the decline in the price of Tesla stock.

Due to his purchase of Twitter, Musk not only lost favour with investors, but he also faced criticism for the modifications he made to the social media firm almost afterwards. Many were worried that his tweaks to the platform’s content restrictions would permit hate speech. He also let go of a sizable number of employees and top executives. In order to boost revenue, he also developed “Twitter Blue,” a $7.99 monthly subscription for a blue checkmark.

Tesla, SpaceX, and the Boring Company are just a few of the six businesses Musk co-founded that make up his fortune. According to Forbes, after selling a lot of his Tesla stock, he still has $445.6 million worth of the company’s stock, excluding options.

Additionally, after taking Twitter private with support from a $12.5 billion loan from a collection of major banks, including Morgan Stanley and Bank of America, he currently owns an estimated 82% of the company.

The second-richest persons in the world, French billionaire Bernard Arnault and his family, who run the fashion business LVMH, are still ahead of him. Their estimated net worth is $159.8 billion. Indian billionaire Gautam Adani ranks third in terms of wealth, with a $144.7 billion net worth derived from commodities and infrastructure. With a net worth of $110.7 billion, Jeff Bezos, founder of Amazon and Blue Origin, comes in fourth.

Conclusion

Elon Musk’s net worth has gone down to about $195.6 billion. On Tuesday, Musk’s net worth went down and hit its lowest point of the year. Forbes says that this is the second time since October 1, 2021, that his net worth has dropped below $200 billion. In May of this year, it briefly fell to $199 billion.

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