Musk's Net Worth Drops by $75 Billion, Title of Richest Person at Risk of Changing Hands

Musk's net worth has fallen by $75 billion this year, with a current net worth of $357 billion. His 13% stake in Tesla has dropped by 20% this year. Oracle co-founder Larry Ellison and Meta CEO Mark Zuckerberg are catching up, with Musk now only $54 billion ahead of Ellison. If the trend continues, Musk may lose his title as the world's richest person by the end of the year.

Elon Musk's wealth has significantly declined this year, with his net worth falling by approximately $75 billion, according to the Bloomberg Billionaires Index [1]. His current net worth stands at around $357 billion, a substantial drop from his peak of over $450 billion last year. This decline is largely attributed to a 20% decrease in his 13% stake in Tesla, the electric vehicle company he founded and serves as CEO.

The primary driver of Musk's wealth reduction is Tesla's stock performance. The company's stock has fallen by nearly 20% this year, which has had a direct impact on Musk's net worth due to his significant ownership stake. Despite the stock's decline, Musk's position as the world's richest person remains secure, but the gap between him and other billionaires is narrowing.

Larry Ellison, the co-founder of Oracle, and Mark Zuckerberg, the CEO of Meta, are closing in on Musk. Ellison's wealth has increased by over $100 billion this year, while Zuckerberg has seen a gain of $56 billion. As of now, Musk is only $54 billion ahead of Ellison, according to Bloomberg [1]. If Tesla's stock continues to underperform and Oracle's stock maintains its upward trajectory, Ellison could potentially overtake Musk as the world's richest person by the end of the year.

Musk's role as the head of the Department of Government Efficiency (DOGE) has also contributed to his wealth reduction. While he claims to have slashed billions of dollars worth of wasteful spending, his controversial role may have had an adverse effect on his financial situation [1].

In response to Tesla's underperformance, shareholders have awarded Musk a pay package worth approximately $29 billion, which he will receive if he remains focused on Tesla for the next two years [2]. This move aims to keep Musk's energies focused on the company and prevent him from pursuing other ventures.

Despite the challenges, Musk's leadership at Tesla remains crucial. The company has had a mixed year, with high points such as the successful debut of its updated Model Y "Juniper" and the initial rollout of its Robotaxi service in Austin, but also faced widespread protests and fierce competition from other automakers [2].

The future of Musk's wealth and Tesla's stock performance will be closely watched by investors and financial professionals. The company's ability to maintain its leadership position in the electric vehicle market and adapt to the evolving technological landscape will be key factors in determining Musk's future net worth and his position as the world's richest person.

References:
[1] https://finance.yahoo.com/news/tesla-poor-stock-performance-slashed-154905612.html
[2] https://www.news.com.au/technology/motoring/on-the-road/elon-musk-is-set-to-cash-in-on-tesla-but-there-is-a-catch/news-story/8329cccdf731f9d6f026d2d63b7d7646