By Alex Omenye
The year 2024 has not been favorable for billionaire Elon Musk, as his net worth takes a hit following a $30 billion drop in Tesla’s market capitalization at the close of Monday’s trading session.
Elon Musk’s net worth experienced a $3.9 billion decline, bringing his valuation to $194 billion, according to Forbes real-time billionaire estimates on Monday.
This drop is attributed to the performance of Tesla shares, which reached their lowest level since last May on Monday. Tesla’s shares have been experiencing a significant selloff in 2024 compared to other major technology stocks.
The sharp 5% midday trading fall positioned Tesla on course for its lowest close since May 18, 2023. This selloff resulted in a substantial $29.7 billion reduction in Tesla’s market capitalization, bringing it down to $568.7 billion.
As a consequence of this decline, Tesla slipped to the 10th position on the list of the highest-valued companies in the S&P 500, falling below Broadcom Inc. and Eli Lilly & Co.
A report from German business daily Handelsblatt revealed that Germany-based software company SAP SE, which manages a fleet of 29,000 vehicles, is discontinuing its purchase of Teslas. The fleet manager cited challenges with Tesla’s frequent changes in list prices and early deliveries, making planning and storage difficult.
Tesla’s recent setbacks coincide with increased scrutiny surrounding CEO Elon Musk’s $56 billion pay package, recently nullified by a Delaware court. This scrutiny is compounded by a Wall Street Journal report highlighting Musk’s alleged exertion of pressure on board members.
Regulatory filings as of April 2023 indicate that Musk owns approximately 13% of Tesla. Additionally, he holds around 304 million exercisable stock options stemming from his 2018 compensation package.
The beginning of the year witnessed a decline in Musk’s net worth, leading to his loss of the title of the world’s richest man to fashion billionaire Bernard Arnault, as reported by Forbes.