Elon Musk lost this amazing amount on Tesla stock
Do you think you’re having a bad year investing in the S&P 500? Elon Musk’s losses far outweigh anyone else’s.
More than $85 billion worth of Musk’s existing stake in the electric car maker has vanished this year, according to an Investor Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
The stock’s drop was so massive that Musk lost his bragging rights of being the richest man in the world, says the Bloomberg Billionaires Index. Musk is now the second richest man in relation to Bernard Arnault, the head of luxury brand company LVMH Moet Hennessy Louis Vuitton.
To put that in perspective, Musk has lost more to Tesla this year than 80% of the entire companies in the S&P 500 are worth. And now, Musk has the dubious distinction of losing more money on Tesla than all the big investors in any stock with most of the market value down this year. Yes, he lost more than Mark Zuckerberg’s Meta platforms (META) ($75.2 billion down).
Tesla’s stock plunge was exactly what Wall Street worried about after Musk’s purchase of the ailing SMS service Twitter.
“This is a very nervous next few months for Tesla investors because they remain the ones who have been punched again and again by musk “Twitter and stock behaviors are deep in the investor’s penalty fund until deliveries arrive in early January, and we get a better idea of the delivery and production trajectory for 2023,” Wedbush analyst Dan Ives wrote in November.
The $85 billion hole in Elon Musk’s pocket
Tesla stock is down 54% this year, and is responsible for Musk’s rapidly fading wealth. It’s hitting hard as Musk remains Tesla’s largest shareholder, with a 14% stake in the company or $80 billion.
But do not think that Musk is the only one suffering from this massive destruction of the wealth of Tesla shareholders. Tesla itself has fallen nearly $550 billion in value this year, marking the sixth largest drop among the S&P 500.
And you’re likely to be a significant shareholder, too. Thanks to Tesla’s massive remaining market capitalization ($514 billion), the stock still holds a 1.3% position in the S&P 500 and the world’s most popular ETF, the S&P 500 ETF Trust (SPY),
Because of this, all mutual funds and ETF companies are deep, too. Vanguard is the second largest owner of Tesla stock. The mutual fund and giant ETF own 6.8% of the company, valued at $38 billion. So Vanguard investors alone lost more than $38 billion in their positions.
Vanguard isn’t alone: all of the big box companies are at Tesla. Black stone (BLK) owns 5.4% of Tesla, while State Street Global Advisors owns 3.2% and Capital Research and Management 3.1%.
Elon Musk: Misery Loves Company
It’s important to note, though, that Tesla isn’t the only giant company losing billions in market value this year.
Musk’s rival, Jeff Bezos, probably isn’t laughing anymore when he looks at his post Amazon.com (AMZN). Shares of the e-commerce giant are down 45% this year, wiping out $747 billion. This has shed more market capitalization than any single company in the S&P 500.
Bezos himself lost $74 billion of his personal paper fortune. It’s not as much as musk, but it’s still enough to make an impact.
Vanguard, once again, carries the largest set of losses due to Alphabet’s epic $684 billion drop in market value this year. Google’s stock drop of 34% this year has hit No. 1 Vanguard hardest. Vanguard’s stake decreased by $44.3 billion.
Volatility is definitely part of investing. But these investors take volatility to an extreme.
Biggest losers in the S&P 500
Large holders of stocks with the largest market capitalization is down this year
|a company||ribbon||stock to date||The biggest owner||Stock loss this year (billions of dollars)|
|Tesla||(TSLA)||-54.3%||Elon Musk||– 85.3 USD|
|Meta platforms||(dead)||-64.3%||Mark Zuckerberg||– $75.2|
|Amazon.com||(AMZN)||-44.5%||Jeff Bezos||– $73.7|
|the alphabet||(The Google)||-34.0%||forefront||– $44.3|
|Netflix||(NFLX)||-46.8%||capital research||– 12.1 dollars|
|PayPal Holdings||(PYPL)||-60.9%||forefront||– $11.0|
|sales force||(CRM)||-46.6%||forefront||– 9.5 dollars|
Sources: IBD, S&P Global Market Intelligence
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