Business World

Tuesday 20 August 2019

Musk is down $4.9bn in Tesla's worst year start

Automotive

Elon Musk’s worth has tumbled
Elon Musk’s worth has tumbled

Tom Metcalf

Tesla shares have never had a worse start to a year than in 2019, and Elon Musk is paying the biggest price.

The stock has tumbled 43pc this year, lopping $4.9bn (€4.4bn) from the value of Musk's stake, as Wall Street has grown increasingly sceptical about consumer demand for the company's electric vehicles.

Please log in or register with Independent.ie for free access to this article.

Log In

Musk (47) is now ranked 46th on the Bloomberg Billionaires Index with a net worth of $19.7bn (€17.6bn), down from 29th at the start of the year.

The rout has erased a total of $7.8bn (€6.98bn) from the stakes of Tesla's four biggest individual shareholders, Musk, Tencent Holdings, Saudi Arabia's Public Investment Fund and Larry Ellison, including $2.7bn (€2.4bn) in May alone.

Ellison, the Oracle Corp co-founder who has been a vocal defender of Musk, bought three million shares last year and joined Tesla's board in December. JPMorgan Chase & Co also may be exposed.

Saudi Arabia's Public Investment Fund owns about 5pc of Tesla but hedged most of its holding in January through an arrangement with the bank.

Tesla's share price has tumbled 46pc since the January transaction, meaning the value of PIF's holding has shrunk by more than $1.3bn (€1.16bn) in that span.

Bloomberg

Sunday Indo Business

Also in Business