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CEO Ilon Musk! How Tesla SpaceX and Twitters Volatility. · Elon Musk Thinking

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  Elon Musk, at three hundred and thirty billion dollars, was the richest man
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  in the world. But then Tesla's stock has plummeted more than sixty five percent
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  since the start of twenty twenty two. He's no longer the world's richest man,
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  and his ev company is on track for having its worst year in the
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  stock's history. By the end of twenty twenty two, Musk lost more than
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  half his net worth. On paper, on any given day, he could
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  be the world's richest man, or he could be the world's second richest man.
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  Or you know, he might fall because the share value of Tesla falls.
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  Most of Musk's wealth is tied up in shares of his businesses. That
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  means volatility in his company's stock and valuations can directly sway his net worth.
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  In the last few months, Musk has recovered some lost ground. His net
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  worth, according to the Bloomberg Billionaire Index, is now estimated at about one
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  hundred and sixty billion dollars, but the trajectory of his key businesses has some
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  investors concerned. Here's how a volatile stretch for some of his companies is impacting
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  Musk's net worth. Elon Musk's wealth really balloon during the pandemic, but in
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  the past year so we've seen it go on a kind of a wild roller
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  coaster. The Wall Street Journal reached out to Elon Musk for common but he
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  did not respond. Since he took over Twitter roughly six months ago, there's
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  been lots of questions about his overall management style and wondering if perhaps some of
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  the magic has been rubbed off. Musk is a serial entrepreneur. He made
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  twenty two million dollars selling his first startup in nineteen ninety nine, an internet
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  business called zip two, then bent most of that money on a startup PayPal.
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  When eBay bought PayPal, he made one hundred and sixty five million dollars
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  and used that to found SpaceX and become an early investor in Tesla. He
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  bought Twitter in October twenty twenty two for forty four billion dollars, funding some
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  of the purchase by selling thirty nine billion dollars worth of his test last shares.
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  It's been a rocky a few months since its takeover. Twitter has never
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  been a company that's made a lot of money, oftentimes being unprofitable on an
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  annual basis. But he takes control and immediately he says he needed to start
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  making dramatic changes. Soon after the purchase, Musk fired top executives, laid
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  off thousands of employees, and said advertisers cutting ad spending had led to a
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  massive drop in revenue. He thinks, he's, in essence rights sized the
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  ship, but now it's a private company, so we don't know exactly what's
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  going on in there. Musk's ambitions for Twitter are a mix of content,
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  communication, and commerce, similar to popular Chinese social media platform we Chat.
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  All this, Musk says, will help turn Twitter into a company worth two
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  hundred and fifty billion dollars. But for now, Twitter is valued around twenty
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  billion, and I remember, twenty billion dollars is dramatically less than what he
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  acquired the company for the deal that was around forty four billion dollars. So
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  just imagine his wealth going like this, and it's just been a wild ride
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  to watch Elon. Musk's main source of wealth is Tesla. As of late
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  April twenty twenty three, Tesla was worth about five hundred billion dollars and Musk
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  owns about thirteen percent of a company. Tesla grew significantly in twenty twenty up
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  to a peak value of one point two trillion dollars in twenty twenty one,
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  but it fell significantly last year, down to a round three hundred and ninety
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  billion, and all that fluctuation has affected Musk's personal wealth. While Tesla's stock
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  has rebounded slightly in twenty twenty three, investors have a few concerns the amount
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  of time Musk spends focused on Twitter and Tesla's price cuts that have reduced profit
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  margins on each car itselfs well, Tesla is profitable and it's projecting a dramatic
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  growth into the future. The question is how dramatic and how profitable. Musk
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  also envisions a future where Tesla's continue making money for the company after someone initially
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  purchases the car, for example, charging for software updates, and that's a
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  big bets in a lot of ways, an industry upending business model. Tesla
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  has not yet shown the ability to deploy fully autonomous vehicle technology, and so
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  he's essentially telling the world this is coming and we're going to make a lot
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  of money down the road. In Wall Street's not so sure about that.
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  And then there's SpaceX. Musk founded the company in two thousand and two with
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  money he got from selling his stake in PayPal, and while SpaceX doesn't release
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  financials, last year, the company was valued at a round one hundred and
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  forty billion dollars. As of twenty twenty two, a trust associated with Elon
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  Musk owned forty two percent of the company. SpaceX executives recently said it's making
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  money off of its Falcon nine rockets and Dragon spacecraft, and executives expect Starlink
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  SpaceX division that provides high speed broadband internet with satellites, to begin making money
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  this year too. Tesla is where the bulk of his wealth is at this
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  point, but SpaceX is increasingly looking like it's going to be a juggernaut onto
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  its own and might be where the next kind of tranche of huge valuation comes
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  from. Musk also owns three other companies, Neuralink, Boring Company, and
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  x Ai. They're all privately held and their finances are unclear the other early
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  stages, you know, the bulk of elong Musk's time at this point is
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  in three places, Tesla, SpaceX, and now Twitter. These other startups
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  are of interest to him, but he would even say that they are far
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  down on the list of priorities in any given day. Musk's wealth has traditionally
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  been tied up in his businesses, and he's been labeled as a cash poor
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  billionaire because he has to borrow against his shares for living expenses. One of
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  the things about Elon is he's become richer and richer is that it gives him
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  the whereworthal and the ability to chase these kind of big ideas that he has,
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  whether it's trying to make a humanity a multiplanetary species, or make electric
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  cars cool, or by that shiny object that he now has, which is
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  Twitter. A stumble now could kind of change his legacy, could perhaps overshadow
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  his past accomplishments. Yet he's still showing a huge appetite for risk.