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Drop in Value of Tesla Shares Robbed Elon Musk of World’s Richest Man Title

Elon Musk was the richest person in the world just a few weeks ago. A staggering drop in the Tesla stock prices and an investment in Twitter mean Elon has lost the crown.

Bernard Arnault, the CEO of the LVHM group is now the richest person in the world with a net worth of $188 billion surpassing Elon Musk’s $178 billion, explained Loanza.

Elon Musk achieved the richest person’s title due to a skyrocketing share price increase in Tesla stocks in the last couple of years. Elon holds around 14% of stocks in Tesla and around 40% in SpaceX.

Tesla’s share price was around $359 on the last day of Q1 in 2022. It has now dropped by almost 50% to $141.02 as of the time of writing.

Elon Musk’s net worth has fallen because of a drop in Tesla’s share price. However, several factors have contributed to this downfall.

Elon Musk has recently purchased the popular social media platform Twitter for a staggering $44. Experts argue that the acquisition is massively overvalued, thus resulting in distress to Tesla investors in turn.

Elon Musk has sold Tesla shares to fund his Twitter takeover. For instance, he recently sold Tesla worth $ 3.96 billion. Again, it does more harm to Tesla shares than other factors in the market.

Elon’s Twitter venture hasn’t been a smooth run either. He announced a takeover interest in Twitter, made a bid, and backtracked. The Twitter board took legal action and forced the deal.

Then, Elon wanted radical changes in Twitter’s policies including its workforce management too. He announced an immediate job cut of around 50% and did so. Further, he announced some radical changes in Twitter policy too.

Tesla also recalled around 40,000 vehicles this year due to a fault in vehicle power- steering. This has also led to a diminishing trust of investors.

In short, Tesla investors look no more confident than they were a year ago. They consider Elon’s shift of focus to Twitter as a massive hurdle to managing Tesla as he did earlier.

Whether or not Elon Musk can regain his status as the world’s richest person in the world remains to be seen. However, Tesla shares are currently witnessing a downfall and can only recover with renewed interest and some policy shifts from Elon.