BackElon Musk’s net worth sinks to 2-year low: Report
Shares of Tesla Inc fell nearly 6 percent on Tuesday after a string of brokerages cut their price targets on the electric-vehicle maker's stock, citing the risk from Elon Musk's Twitter distraction.
PremiumElon Musk’s fortune continues to take a beating a week after he lost his spot as the world’s richest person. As reported by Bloomberg, Musk's net worth has tumbled $7.7 billion on Tuesday after Tesla Inc. shares had their steepest one-day loss since October.
According to the Bloomberg Billionaires Index, the Tesla chief executive officer’s net worth is now $147.7 billion, the lowest in more than two years. His fortune is primarily comprised of Tesla stock and options. The automaker’s spiraling shares pose a particular risk for Musk, 51, who leveraged more of his position to finance his acquisition of Twitter in October.
Shares of Tesla Inc fell nearly 6 percent on Tuesday after a string of brokerages cut their price targets on the electric-vehicle maker's stock, citing the risk from Elon Musk's Twitter distraction. Tesla's shares hit a more than two-year low of $140.86.
Analysts told Reuters that investors are worried that Musk may need to sell shares further to fund Twitter and sentiment around the acquisition of the social media firm could hurt the EV maker's brand.
Evercore ISI, which slashed its price target on the company's shares to $200 from $300 said investors fear damage to the Tesla brand.
Daiwa Capital Markets also cut its price target to $177 from $240, citing a "higher risk profile from the Twitter distraction".
Tesla shares, which have lost nearly 60 percent of their value so far this year, closed down 0.2 percent on Monday as Twitter users voted decisively in a poll for Musk to step down as chief executive of the social media platform. Analysts at Oppenheimer downgraded Tesla's shares on Monday.
The price target cuts come ahead of Tesla's quarterly deliveries report expected in early January amid weakening demand in China. Daiwa lowered the company's delivery estimate by 5 percent for 2023 and forecast an 8 percent reduction in revenue per unit year-over-year.
Musk has said Tesla targets 50 percent growth in delivery volumes annually, however, the electric-vehicle maker said it will miss the target this year due to logistics issues.
Last week, Musk sold another $3.58 billion worth of Tesla Inc. shares, bringing the total amount he’s offloaded since late last year to almost $40 billion. Tesla’s market value also has slumped below the half-trillion-dollar mark for the first time since November 2020.
On 13 December, the selloff adds to the woes of Musk, who lost his status as the world’s richest person to luxury tycoon Bernard Arnault. Musk’s losses for the year now total $122.6 billion, exceeding the amount he gained in 2021 when his fortune soared to rank among the biggest in history.
(With inputs from agencies)
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