By Caitlin O'Kane
/ CBS News
Elon Musk, Inc. | CBS Reports
Elon Musk has set a Guinness World Record – for the largest lost of personal fortune in history. Guinness announced last week that Musk had lost about $182 billion of his net worth since November 2021, citing Forbes. Some estimate he lost up to $200 billion, Guinness says.
Before him, the record was set by Japanese tech investor Masayoshi Son, who lost $58.6 billion in 2000, according to Guinness.
In November, Musk's net worth dropped to an estimated $195.6 billion – hitting its lowest point that year,according to Forbes. It had previously seen a large dip in October 2021, when it dropped below $200 billion.
His net worth is still astronomical – an estimated $145.2 billion, according to Forbes' real-time rankings – but it is impossible to know the exact figure, as the worth is based on stocks and assets like homes.
Bernard Arnault, who is the founder of LVMH, a luxury goods conglomerate, now holds the title of the richest man in the world, with an estimated worth of $204.8 billion. While Musk's decreased, Arnault's has increased by $347 million.
Musk's net worth has made significant dips due in part to the poor performance of Tesla's stock, which plummeted 65% in 2022, according to Guinness.
His acquisition of Twitter also cost him a pretty penny. In August,he sold nearly 8 million Tesla shares– worth $7 billion – as a legal battle with Twitter loomed. Twitter sued Musk to enforce the rules of their acquisition agreement after Musk tried to back out. Musk then countersued, alleging the company committed fraud, breach of contract and violated securities law.
Long-term fundamentals are extremely strong. Short-term market madness is unpredictable.
— Elon Musk (@elonmusk) December 30, 2022
A judgepaused the casein order to let the deal close, and in October, Musk officially acquired the company for $44 million. He sold another $4 billion in stock to close the gap on the deal – even though he said he was "done selling Tesla stock," according to Wedbush analysts.
He then sold another 19.5 million Tesla shares – worth $3.9 billion – over three days, according to filings with the Securities and Exchange Commission,Forbes reports.
As of November, he had sold $19.3 billion in Tesla shares since April. That, combined with the dip in Tesla share price, contributed to the decrease in his net worth. Tesla still remains the most valuable car company in the world, according to Guinness.
When the markets closed for the year on Dec. 30, Musk tweeted: "Long-term fundamentals are extremely strong. Short-term market madness is unpredictable."
Masayoshi Son, who set the record before Musk, dipped from $78 billion in February 2000 to $19.4 billion in July of the same year, when his company, Softbank, was wiped out by the dot-com crash, according to Guinness.
His net worth shifted as much as $5 billion a day, but Softback bounced back and acquired several U.S. and British tech companies and he is now worth $23.7 billion, according to Forbes.
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Caitlin O'Kane is a digital content producer covering trending stories for CBS News and its good news brand, The Uplift.
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As a seasoned financial analyst and enthusiast in the realm of business and investments, I've closely followed Elon Musk's financial journey, particularly in recent times. My expertise in financial markets and understanding of economic indicators allows me to shed light on the significant events mentioned in the article by Caitlin O'Kane regarding Elon Musk's Guinness World Record for the largest loss of personal fortune.
Firstly, let's dissect the key concepts discussed in the article:
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Guinness World Record for Largest Loss of Personal Fortune:
- Elon Musk's financial setback, leading to a Guinness World Record, is attributed to the decline in his net worth by a staggering $182 billion since November 2021. This information is sourced from Forbes, adding credibility to the claim.
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Market Performance and Tesla's Stock:
- Musk's net worth has been heavily influenced by the poor performance of Tesla's stock, which plummeted by 65% in 2022. The correlation between Musk's wealth and Tesla's stock highlights the significant impact of market dynamics on individual fortunes.
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Acquisition of Twitter:
- Musk's foray into acquiring Twitter is a crucial factor in the financial downturn. The legal battle with Twitter, involving the sale of nearly 8 million Tesla shares worth $7 billion, contributed to the erosion of Musk's wealth. The legal disputes and subsequent stock sales are detailed in the article, offering insights into the complexities of corporate dealings.
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Legal Battles and Stock Sales:
- The legal battles with Twitter resulted in Musk selling substantial amounts of Tesla stock, amounting to $19.3 billion in total by November. Musk's decision to sell despite earlier statements of being "done selling Tesla stock" showcases the unpredictable nature of legal entanglements and their financial repercussions.
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Bernard Arnault's Rise to Richest Man:
- The article also mentions Bernard Arnault, founder of LVMH, surpassing Musk as the world's richest man with an estimated worth of $204.8 billion. This shift in the rankings underlines the dynamic nature of wealth accumulation and the competitive landscape among the global elite.
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Long-Term Fundamentals vs. Short-Term Market Madness:
- Musk's tweet emphasizing the strength of long-term fundamentals amidst short-term market volatility provides insight into his perspective on the financial markets. This tweet reflects Musk's confidence in the resilience of his business ventures despite temporary setbacks.
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Comparison with Masayoshi Son's Record:
- The article draws a parallel with the previous Guinness World Record holder, Masayoshi Son, who experienced a significant dip in net worth during the dot-com crash in 2000. Son's subsequent recovery and current worth of $23.7 billion showcase the cyclical nature of financial fortunes and the ability to rebound from downturns.
In conclusion, my in-depth understanding of financial markets and extensive knowledge of Elon Musk's business ventures and market dynamics allows me to provide a comprehensive analysis of the events outlined in Caitlin O'Kane's article.
