'Forbes' reports that Musk's net worth went from $320 billion in 2021 to $138 billion in January 2023. Plummeting Tesla shares accounted for much of the drop. Video / AP
Elon Musk has broken a world record – but not one he’ll be particularly pleased about.
According to Guinness World Records, Musk has seen his personal fortune drop by the largest amount in history.
Over just one year, Musk has lost around US$183 billion ($286 billion), estimated Forbes. That’s the equivalent of just a little less than Greece’s entire gross domestic product.
It’s estimated he had been worth some US$320 billion ($500b) in November 2021 but now has an on paper personal fortune of US$137b ($214b).
It means Musk has seen his fortune fall by more than the previous holder of the dubious title held by Korean-Japanese investor Masayoshi Son.
In October 2021, Tesla stock was trading at approximately US$400 per share but is now down to around US$120.
During the past year, Musk has sold large chunks of his Tesla shareholding totalling around US$40b. The sell downs come as he devotes more time to Twitter, which he bought for US$44b in October.
His purchase of Twitter is one of the factors in the fall of Tesla’s share price. Investors are concerned he has been distracted from the car company due to his social media purchase.
It’s also a sign of just how closely linked the performance of his companies is to his personal actions.
Musk continues to own a 13.4 per cent stake in Tesla.
Despite the fall Tesla remains the world’s most valuable car company, ahead of Toyota and Mercedes.
The entrepreneur has stressed he is unfazed about what he feels are short-term market fluctuations.
Elon Musk enters the Twitter HQ with a sink. Photo / AP
Guinness World Records has stressed that the fortunes of very rich people can see-saw as much of their wealth is in the form of shares.
That swing can be even more pronounced if many of those shares are in a single – or a handful – of companies that the person founded rather than being spread out across the market. As is the case with Musk.
Musk still has a lot of ready cash to comfort himself with.
Nonetheless, Musk suffered another financial ignominy in December when he was knocked off his perch as the world’s richest person.
The title now belongs to French businessman Bernard Arnault, the chief executive of luxury goods manufacturer LVMH Louis Vuitton Moet Hennessey.
LVMH also owns Christian Dior, Givenchy, Sephora, Fenty Beauty by Rihanna, TAG Heuer and Tiffany & Co, among other well-known brands.
The 73-year-old Mr Arnault is now worth around US$189b.
He has five children, two with his first wife Anne Dewavrin and three with his current wife Helene Mercier. All his children have senior roles at LVMH.
