Recession fears affect almost everyone.
Even the richest man in the world, who has just left the most exclusive club on the planet.
Elon Musk, CEO of electric vehicle manufacturer Tesla (TSLA) – Get the report from Tesla Inc., remains the richest man in the world, but his fortune has fallen sharply. Since June 13, Musk, who was the only person in the world with an estimated fortune of more than $200 billion, has fallen below that bar.
According to Bloomberg Billionaires Indexhis net worth is currently valued at $197 billion, down $11.9 billion from June 12.
The $200 billion club thus loses its last and only member.
Musk’s fortune, which is largely based on his stake in Tesla and his other company SpaceX, has shrunk by $73.2 billion since January. Musk currently owns 23.5% of Tesla shares, according to a Tesla Proxy Filingwhich was worth more than $171 billion at the June 13 close.
It’s the second time this year that the tech mogul has left the $200 billion club.
The first time this happened was in February, but the tycoon quickly rebounded as Tesla stock resumed its rally on Wall Street. Investors were convinced that the electric vehicle manufacturer had the keys to dominate the market with the planned inauguration of two new production sites, one near Berlin in Germany and the other in Austin, Texas.
But Musk’s April announcement of a $44 billion takeover bid on microblogging site Twitter (TWTR) – Get the report from Twitter Inc. and the saga that followed raised concerns. Many Tesla fans and investors fear that Musk is less focused on the automaker.
Added to this is now a flagrant economic recession due to the rate hike by the Federal Reserve to fight against inflation. Musk himself recently said that we are already in a recession, although technically we are not yet.
The billionaire also reiterated that recessions aren’t necessarily a bad thing.
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“I think we’re probably in a recession and the recession is going to get worse,” the billionaire said May 16 during a virtual appearance at the recent All-In Conference held in Miami. “But you know, these things pass and there will be boom times again.”
The Tesla CEO added that the recession will “probably” last 12 to 18 months.
“That’s usually the time it takes for a correction to occur.”
‘Zuck’ is only 17th
“Recessions aren’t necessarily a bad thing. I’ve been through a few. And what tends to happen is if you have a boom that lasts too long, you get a bad allocation from the capital. It starts raining money on fools. Basically, it’s like anything gets money and I’m sure you’ve seen a few of those,” Musk said.
“So somebody just gets out of control. And you just have a misallocation of human capital where people are doing stupid, unnecessary things for their fellow human beings,” he continued. “Watch your cash flow and get cash flow positive whenever you can.”
Musk’s wealth peaked at $340.4 billion on Nov. 4, when Tesla shares hit an all-time high, according to Fortune.
Days later, Tesla shares slumped after Musk indicated he might sell around 10% of his stake in the clean-energy automaker.
He donated more than $5 billion worth of Tesla stock to charity in November, when shares were well above $1,100, according to regulatory filings.
Musk remains by far the richest man in the world. There’s a rift between him and Amazon founder Jeff Bezos (AMZN) – Get the report from Amazon.com Inc.who is the second richest man in the world with a net worth of $127 billion as of June 13.
Bernard Arnault, Chairman and CEO of LVMH (LVMHF) Moët Hennessy, whose net worth is $121 billion, comes in third.
Bill Gates is 4th with an estimated fortune of 114 billion dollars and Warren Buffett is 5th with a fortune of 103 billion dollars.
Mark Zuckerberg, CEO of Meta Platforms (META) – Get the report from Meta Platforms Inc.Facebook’s parent company, whose fortunes have shrunk by $64.4 billion since January, is only 17th with a net worth of $61.1 billion.