Elon Musk’s net worth is down $75 billion this year to $358 billion, according to the Bloomberg Billionaire Index. While much of this is due to Tesla Inc. (NASDAQ: TSLA), a large portion of his net worth is in other companies.
24/7 Wall St. Key Points:
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Elon Musk’s net worth has fallen by $75 billion so far this year.
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That is largely due to a drop in the value of Tesla Inc. (NASDAQ: TSLA).
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Musk controls xAI, one of the largest privately held artificial intelligence companies. It plans to raise $10 billion, putting its value at $75 billion. Musk owns over half of xAI.
Musk and xAI have made an offer for larger OpenAI for $97.4, which OpenAI has rejected. OpenAI has been valued at two times the dollar 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 eventually combined, they would be an AI behemoth. AI is widely considered the most important advance in technology—perhaps in history.
Musk also owns 42% of SpaceX, the world’s largest rocket company, which has an estimated valued of $350 billion. It is the gold standard for launching both people and commercial satellites. SpaceX has allowed Musk to launch thousands of satellites to create Starlink, which will eventually be able to provide internet service anywhere in the world. The plan is for its satellite total to reach 42,000.
Musk’s net worth cratering this year is due to a drop in the value of Tesla, of which he owns just over 10%. Its stock has fallen 25% in the past month, and its market cap has slipped below $1 trillion. A sharp decline in Tesla’s European sales is one reason for the shrinking market cap. In Germany, those sales were off 59% in January from the same month a year ago. The decline in France was 63%. In China, the number of Teslas sold decreased 11% year over year in January. China is the world’s largest electric vehicle market. Additionally, Tesla faced a recent 376,000-vehicle recall in the United States due to a potential loss of steering power.
If Musk’s net worth goes back up, it will likely be due to a rise in Tesla shares.
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