It is difficult to label someone a loser after becoming the wealthiest man in the world. However, this is exactly what Guinness World Records recognized when it awarded Elon Musk the distinction of the richest person in history to hold the position of greatest wealth loss.
Since November 2021, he’s lost almost $182 billion, setting a new and embarrassing record and surpassing the previous holder, Japanese tech billionaire Masayoshi Son.
The creator of SoftBank, who had been the rightful owner for 21 years, suffered a $58.6 billion loss in the year 2000.
The record was finally beaten, although after a considerable amount of time, and in a clear manner. Although Bloomberg and other sources, including Fortune, claim Musk lost $182 billion, other estimates put the figure closer to $200 billion.
It would be incorrect to do these estimates without taking inflation into account since that would be approximately four times what Son lost in 2000.
The United States Inflation Calculator estimates that 58.6 billion dollars in 2000 would be equal to $99.6 billion dollars in 2022.
In spite of this correction, Musk still lost about double as much as the Softbank CEO when “the dot-com crisis” destroyed the value of his tech company.
However, Guinness World Records makes it clear that Elon Musk’s wealth decline is not entirely attributable to fluctuations in the market circumstances.
This frightening fall, according to the group, “increased in October when Musk purchased Twitter for around $44 billion (£37 billion; €42 billion),” they write.
The article also mentions how “the turbulent acquisition, combined with Musk’s divisive conduct on the platform, prompted the worst Tesla stock sell-off since the firm went public in 2010.” Just important information is left out of the procedure.
Elon Musk entered into agreements to purchase Twitter but ultimately changed his mind. The Twitter shareholders took issue with it and filed a lawsuit against the Tesla CEO, demanding that he purchase Twitter for the price he had promised to pay.
Musk lost his case and evidently wanted to avoid going to court, so he hurried to purchase Twitter before the contract expired.
Musk had to invest his own money in the sale since his credit agreements did not provide enough financing to finance the purchase.
He was forced to sell since “the bulk of Elon Musk’s money is connected to Tesla shares.” Before he ever said he would purchase Twitter, he began doing it in November 2021.
This is when Musk’s financial loss began, according to Guinness World Records. Musk has sold enough Tesla shares since November 2021, when the company was valued at $1.23 trillion, to generate $39 billion. To put it another way, this enormous stock transaction may have influenced Tesla’s decline.
We are often reminded by conventional knowledge that “the larger they are, the harder they fall.” That follows from simple reasoning in a sense: if you are not high enough, a large fall is impossible.
Sadly, many investors who had invested their whole lives savings in Tesla shares also suffered significant financial losses.
Despite the fact that Musk broke the record, hundreds, if not millions, of other individuals ended up losing more money than they ever had in their lives after following in his footsteps.
While he was creating his tech empire, Guinness World Records said that they “won’t be shocked to see him rebound too at some moment in the future.” A surprise won’t do for those who still believe in him; instead, they will hope for this recuperation to be sure.