Elon Musk’s Drop In Fortunes Earns Him A Guinness World Record

Once ranked the richest man in the world, Elon Musk set a regrettable world record after recently experiencing an enormous wealth wipeout. According to a report from Guinness World Records, Musk, whose net worth surpassed $300 billion at one point, broke the record for “the biggest loss of personal fortune in history.”

According to the Bloomberg Billionaires’ Index, Musk’s wealth dropped by more than $210 billion to an estimated $130 billion as of Tuesday after peaking at $340 billion in November 2021. According to Forbes, Musk’s net worth decreased from $320 billion (€295 billion) in 2021, when it was at its highest, to $138 billion (€127 billion) in January 2023.

AC NewsPhoto / Alamy. Simon Belcher / Alamy | Elon Musk has broken the world record for the largest loss of personal fortune in history

However, Musk’s Twitter (mis)adventures did not lead to the breaking of this record. Although it might be claimed that Musk’s purchase of Twitter contributed to the company that first made him wealthy, almost going under, Forbes claims that the billionaire’s wealth loss is primarily the result of Tesla’s stock’s poor performance.

By any metric, Musk’s losses surpassed the previous record set by Masayoshi Son, the founder of SoftBank and a Japanese tech investor who lost $58.6 billion of his fortune in 2000 as the dot-com bubble burst. The unexpected decline cost Musk his long-held position as the richest person in the world. On Bloomberg’s ranking, he is presently ranked second behind LVMH founder Bernard Arnault, who is thought to be worth $179 billion.

What the critics say

Susan Walsh/ AP | Elon Musk is no longer the richest person in the world

Tesla struggled with supply chain challenges, declining demand in the important China market, and the aftermath of Musk’s contentious takeover at Twitter as the automaker’s shares fell by a staggering 65% last year. After Tesla’s most recent vehicle delivery totals fell short of Wall Street’s estimates, the slide has persisted into the new year.

Critics claim that by selling off huge chunks of stock to pay for his $44 billion purchase of Twitter, Musk added to the crisis of investor confidence Tesla is currently experiencing. As advertisers left the network after Musk’s deal, Twitter’s revenue is said to have dropped. Musk has come under intense scrutiny for his actions at Twitter, including eliminating hundreds of jobs, negotiating with advertisers, and revising the company’s account verification guidelines.

Bottom line

Andrew Kelly/ Reuters | Elon Musk has lost more than $210 billion on paper

The majority of Musk’s fortune is invested in Tesla shares, which fell in value by 65% last year and further decreased following Musk’s acquisition of Twitter.

In case you were wondering, Bernard Arnault, a French businessman, has surpassed Elon Musk as the richest person in the world. According to Forbes’ real-time billionaires’ list, his estimated net worth is close to €205 billion (189 billion). He founded the luxury goods firm LVMH if the name doesn’t ring a bell.

Although he suffered setbacks, Musk is not to be pitied. With Tesla continuing to be the most valued automobile manufacturer in the world, the billionaire is currently the second richest person.