From a wealth standpoint, Elon Musk has had a tough year. According to the Bloomberg Billionaire Index, his net worth has fallen by over $47 billion. The drop in Tesla’s (NASDAQ: TSLA | TSLA Price Prediction) stock probably accounts for almost all the loss. That leaves his net worth at $385 billion.
Musk owns about 10% of Tesla. The company’s stock has dropped over 17% this year, bringing its market cap to $1.1 trillion. There are a few reasons the shares have declined. January sales have been soft in some parts of the world. They were off 59% from the same month a year ago in Germany. In France, the drop was 63%. In China, the number of Teslas sold dropped 11% year over year in January. China is the world’s largest EV market. Additionally, Tesla was hit by a recent 376,000-vehicle recall in the US due to a potential loss of steering power.
Musk’s xAI plans to raise $10 billion, putting its value at $78 billion. Musk owns over half of xAI. Musk has made an offer for larger OpenAI for $97.4, which OpenAI has rejected. OpenAI has been valued at two times the value of Musk’s offer. A group of investors (Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, and 8VC), including xAI, announced this possible takeover. If the two companies were combined, they would be an AI behemoth.
Musk also owns 42% of SpaceX, the world’s largest rocket company, which is estimated to be valued at $350 billion.
Even with Tesla’s stock dropping, there is reason to believe that Musk will remain the world’s richest person.
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