Tesla has been facing a wipeout of value in recent weeks due to manufacturing issues. The Chinese market and recall of vehicles, due to faults, means the electric motor vehicle company, which was worth over $1 trillion dollars, has been falling in value and is now at $526bn. However, despite this, Elon Musk’s EV company still has a much larger market capitalisation than any of the other major automakers, whose output and market share are higher. Musk says the reason is that Tesla cannot only be looked at as an automaker, but also as a software company, specifically a software company specialising in real-world AI. It has some of the broadest and most advanced networks provided by the Tesla autopilot system, which is continually developing. Tesla is also a significant producer of batteries for both vehicles and homes – and is moving into consumer robotics with its humanoid robot, Optimus. Musk, Tesla CEO, has also suffered a significant drop in wealth due to the fall in the value of Tesla stock, his net worth falling by over $100bn this year. More in this article from Bloomberg – Ross Sinclair
Elon Musk’s 2022 Wealth Loss Exceeds $100 Billion for First Time
By Nur Dayana Mustak
(Bloomberg) — Elon Musk’s losses for 2022 topped $100 billion as shares of Tesla Inc. dropped to the lowest level in two years.
The Tesla co-founder is still the world’s richest person with a fortune of $169.8 billion, according to the Bloomberg Billionaires Index, even after seeing his net worth shrink by $8.6 billion on Monday. He’s down $100.5 billion this year — the most of anyone on the wealth index — after peaking at $340 billion a little more than a year ago.
The electric-car maker comprises the bulk of his fortune and is struggling with burgeoning Covid-related restrictions in China, its largest market outside of the US. The Austin, Texas-based firm recently announced a recall of more than 300,000 cars due to faulty taillights, while also dealing with supply-chain snarls and soaring raw material costs.
Tesla shares dropped 6.8% to $167.87 in New York trading Monday — the lowest since November 2020 — and are down 52% this year. That compares with a 29% decline in the tech-heavy Nasdaq 100 Index.
Musk, 51, has also been preoccupied with Twitter, the social-media network he acquired last month for $44 billion. The company has lost about 60% of its work force since Musk took over, with the latest round of layoffs coming on Sunday. Investors have been questioning whether the billionaire is spreading himself too thin among his various high-profile ventures.
Tesla’s dependence on Musk is listed as a risk factor in its security filings, highlighting that “although Mr. Musk spends significant time with Tesla and is highly active in our management, he does not devote his full time and attention to Tesla.”
–With assistance from Jack Witzig.
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