Elon Musk Sees Biggest Billionaire Loss of 2024

Elon Musk, Tesla’s high-profile CEO, has faced a significant financial setback in the first half of 2024, experiencing the largest drop in net worth among the world’s billionaires. According to estimates, Musk’s fortune plummeted by over $29 billion, marking a notable decline in a year otherwise characterized by a thriving stock market. This drop is particularly striking given Musk’s previous reputation for substantial wealth accumulation. His financial woes stem primarily from a Delaware judge’s January decision to invalidate his record Tesla compensation package, which was originally valued at $51 billion. The judge’s ruling imposed a 50% discount on this equity award due to uncertainties regarding Musk’s ability to obtain these stock options, affecting Tesla’s stock value and contributing to Musk’s financial decline.

The legal battle over Musk’s compensation package has introduced ongoing uncertainty. Despite Tesla shareholders re-approving the package on June 13, the lengthy and uncertain appeal process means that the discount remains in effect. This uncertainty has impacted the perceived value of Musk’s compensation. Beyond this issue, Musk’s existing 13% stake in Tesla also saw a significant decrease in value. Tesla’s stock fell by 20% in the first half of 2024, driven by declining profits and reduced car deliveries. This drop resulted in a loss of about $20 billion in the value of Musk’s Tesla shares. However, Musk’s financial landscape is not entirely bleak. His investment in the AI startup xAI has grown to $14.4 billion. Additionally, Musk retains a substantial stake in SpaceX, valued at approximately $75 billion, a $7 billion investment in the social media platform X, and smaller holdings in ventures such as Neuralink, a brain-computer interface company.

Despite Musk’s challenges, the first half of 2024 has been generally positive for the world’s wealthiest individuals. The collective net worth of the top 10 richest people increased from $1.47 trillion at the end of 2023 to $1.66 trillion by June 2024. However, Musk is one of the few billionaires experiencing a financial decline. Other notable figures have also faced significant losses: Bernard Arnault, Europe’s richest man, saw his net worth decrease from $200.7 billion to $193.8 billion, primarily due to a drop in the value of his luxury conglomerate LVMH. Carlos Slim Helu, the wealthiest person in Mexico, saw his fortune decline from $105.3 billion to $91.4 billion as shares of his telecommunications company fell. Phil Knight, cofounder of Nike, experienced a reduction in his net worth from $42.9 billion to $33.7 billion due to a significant drop in Nike’s stock value. Philanthropist Mackenzie Scott, whose wealth is derived from her Amazon shares, saw a $4.7 billion decrease in her net worth, largely due to her substantial charitable donations, despite an improvement in Amazon’s stock performance.

On the positive side, the first half of 2024 has been marked by significant gains for many individuals. Global stock markets, including the S&P 500 in the U.S., the Stoxx 600 in Europe, the Nikkei 225 in Japan, and the Nifty 50 in India, have reached new all-time highs. Nvidia CEO Jensen Huang has been the standout performer, with his net worth soaring by $64.1 billion, propelling him from the 27th to the 14th position among the world’s wealthiest individuals. Other major gainers include Mark Zuckerberg, CEO of Meta, whose wealth increased by $61.5 billion; Michael Dell, CEO of Dell, with a $35.8 billion gain; Larry Ellison, chairman of Oracle, whose net worth rose by $37.7 billion; and Larry Page, cofounder of Google, who saw a $33.1 billion increase in his wealth.

Regionally, Mukesh Ambani emerged as Asia’s biggest gainer, with a $22.4 billion increase in his net worth. In Europe, Amancio Ortega was the top performer, experiencing a $10.7 billion rise. Eduardo Saverin led South America with an $8.1 billion gain, and Aliko Dangote was Africa’s top gainer, with a $3.9 billion increase.

Elon Musk’s current net worth is approximately $99 billion less than its peak value of around $320 billion, which was achieved in November 2021. Tesla’s stock has declined more than 50% from its all-time high during this period, contrasting sharply with the S&P 500’s 22% gain. Additionally, the 25 richest people, excluding Musk, saw an average increase of $14.4 billion in their net worth over the first six months of 2024.