Elon Musk, the only billionaire whose net worth topped $200 billion this week, saw his net worth drop $13.3 billion on Thursday as Russia launched hostilities in Ukraine.
According to the Bloomberg Billionaire Index, the Tesla CEO is now worth roughly $199 billion.
He is one of only two people to ever reach the coveted $200 billion mark, the other being his rival Jeff Bezos, who surpassed it last April before dropping to $176 billion in December.
Markets fell sharply on Thursday amid a massive invasion of Eastern Europe.
Elon Musk, the only billionaire to boast a net worth of over $200 billion ahead of this week, saw his fortune drop $13.3 billion on Thursday as Russia began military operations in Ukraine.
Tesla shares fell for the fifth day in a row on Thursday morning to $700 a share, the lowest valuation since August, amid a global market sell-off fueled by fear of a Russian occupation that began early Thursday morning. It has since recovered to $768 per share as of Thursday afternoon and continues to hover around that mark.
Tesla shares fell for the fifth day in a row on Thursday morning to $700 a share, the lowest valuation since August, amid a global market sell-off fueled by fear of a Russian occupation that began early Thursday morning.
It has since recovered to $758/share and has continued to hover around that mark as of Thursday afternoon ET.
Musk, 50, owns 172.6 million shares of the electric car maker, which was worth $1 trillion until December and then fell below that mark after the South African mogul polled social media followers about whether he should sell his stake, which did his biggest. individual shareholder, and his wealth is irrefutably linked to the current market value of the company.
Top ten richest people in the world
1. Elon Musk – $199 billion
Source: Tesla, Space X
2. Jeff Bezos – $169 billion
3. Bernard Arnault – $155 billion
4. Bill Gates – $122 billion
5. Larry Page – $114 billion
6. Warren Buffett – $112 billion
Source: Berkshire Hathaway
7. Sergey Brin – $115.1 billion
8. Steve Ballmer – $101 billion
9. Larry Ellison – $90 billion
10. Makesh Ambani – $89.9 billion
Bloomberg Billionaires Index data for February 24.
The company is valued at about $789.64 billion as of Thursday, up from a November high of $1.1 trillion, up nearly 30 percent.
Musk, still the world’s richest man, has lost $72 billion of his fortune this year, more than the combined wealth of the next three richest people, Bezos, Louis Vuitton boss Bernard Arnault and Bill Gates combined. continue to languish due to growing tensions between Ukraine and Russia.
Bezos, the world’s second richest person, and Arno have both lost an estimated $22 billion of their wealth this year, bringing their net worth to $169 billion and $155 billion, respectively, according to Bloomberg.
Musk, meanwhile, peaked at $340.4 billion last year in November, when Tesla shares hit a record high of $1,222 a share, up 43 percent from Thursday’s low.
Later that month, the flamboyant CEO, known for his social media antics, asked his tens of millions of Twitter followers if he should sell part of his 17 percent stake in his company, prompting a precipitous drop in its shares that wiped out $35 billion. . from his own capital during the day.
In the months that followed, the stock briefly rebounded late last year, approaching $1,200 before going into free fall in 2022, hitting $846 in late January and down $700 in February.
During this notable downturn, Musk sold a staggering $16 billion worth of stock and donated $5.7 billion to charity, apparently anticipating how the escalating tensions between Russia and Ukraine would affect his company and therefore his wealth.
After months of hesitation and uncertainty sparked by an alleged conflict between the two countries, stocks began to plummet on Wall Street on Tuesday after Russia sent troops into Ukraine’s eastern regions, further heightening tensions.
Then on Thursday, Russian troops launched a nighttime raid on several cities on the border with Ukraine, including the capital Kiev, sending stocks in Europe and the US plummeting, with the S&P 500 also falling in early morning trading.
The conflict in Ukraine, which began early Thursday morning, has affected the global stock market, affecting companies and people around the world.
The second and third richest men, Jeff Bezos, and Louis Vuitton boss Bernard Arnault have each lost roughly $22 billion of their wealth this year, bringing their net worth to $169 billion and $155 billion, respectively.
Shares of US tech giants such as Amazon tumbled on Thursday as news of a Russian invasion of Ukraine spread. Bezos owns about 11 percent of Amazon shares and lost $22 billion in a few days due to market problems.
LVMH Arnaud Moët Hennessy Louis Vuitton also experienced a sharp drop that took its toll on his wealth, falling about 6 percent from Wednesday to Thursday.
In November, Musk, known for his social media antics, asked his tens of millions of Twitter followers if he should sell part of his 17 percent stake in his company, prompting a rapid plunge in its shares that wiped $35 billion from his net worth. stands during the day. During this downturn, Musk sold a staggering $16 billion worth of stock and donated $5.7 billion to charity, anticipating how the situation between Russia and Ukraine would affect his fortune.
Shares of US tech companies like Amazon, Apple and Google weren’t left out Thursday either, as Russia’s incursion dented global markets.
The Nasdaq tech-linked composite index was down 2.5 percent – its losses worse than the market as a whole – when the bell rang on Thursday. Individual technical names have experienced even more difficult tests.
Apple shares fell 4% after the markets opened, while parent company Facebook Meta fell 2.0%, Amazon fell 1.2% and Google fell 1%.
Industry watchers say the tech industry is particularly vulnerable to a sell-off in stocks, even though Russia and Ukraine are not key markets for US tech giants. Analysts say they are already trading at prices so high that any minor breach could knock them off their already shaky pedestals.
Energy markets also tightened as shares in Moscow fell an unprecedented 50 percent, forcing officials to halt trading earlier in the day. Since then, trade has resumed.
The price of oil also soared to $105 a barrel and global stocks fell across the board, exacerbating market turmoil fueled by fears of a full-blown military conflict between the two bordering countries.
Russia is a major energy producer, hence fluctuations in energy prices, which are then exacerbated by the inevitable risks of a wider conflict, with more countries ready to jump in to start a full-scale war.
Oil prices have recently risen to their highest level since 2014.
As of Thursday, it was up about $4, or 3.7 percent, to about $95 a barrel in electronic trading on the New York Mercantile Exchange.
The price of Brent crude, the standard for international oil, rose by an astonishing $11.50 to hit about $105 a barrel for the first time since 2014, confirming fears of a escalating conflict causing global energy outages.
US President Joe Biden announced new sanctions on Russia on Thursday afternoon, refusing to take oil from the country, which the head of state called the “aggressor” in the conflict.
He warned that Putin’s “choice” to wage war on Ukraine would hurt the country’s economy.
Louise Dixon, senior oil market analyst at Rystad Energy, says the concerns are well founded and that oil prices will continue to rise as the conflict escalates.
“Oil prices are rising without end as news of Russia’s full-scale military invasion of Ukraine immediately puts up to 1 million barrels a day of Russian crude oil exports passing through Ukraine and the Black Sea at risk,” she told Reuters on Thursday.
According to the publication, on Thursday at least three major buyers of Russian oil were unable to open letters of credit from Western banks to cover purchases.
“Russia is the third largest oil producer and the second largest oil exporter. With low inventories and shrinking spare capacity, the oil market cannot afford a major disruption to supply,” UBS analyst Giovanni Staunovo said on Thursday.
“Supply concerns could also drive stockpiling activity, which is supporting prices.”
Russia is also the largest supplier of natural gas to Europe, supplying more than a third of the continent’s supplies.