For 18 years, from 1995 to 2017, Bill Gates was the richest person in the world, pretty much uninterrupted (technically, Carlos Slim and Warren Buffett held the #1 spot for very short terms during that period). Jeff Bezos ended Bill's reign in July 2017 and proceeded to dominate the spot until January 2021, when he was overtaken by Elon Musk. As you may know, the rise and fall and rise and fall of Elon Musk's fortune in the last decade has been nothing short of mind-boggling. Here's a quick summary of Elon Musk's net worth over the last ten years:
The Evolution of Elon Musk's Net Worth
Ten years ago today, Elon Musk was worth $11 billion, which was not enough to even crack the top 100 of the world's richest people. His net worth didn’t really budge between 2014 and mid-2017, at which point it steadily increased to around $20 billion. It stayed right around that mark for the next two years until things took an unexpected turn during the pandemic.
Elon started 2020 with a net worth of $33 billion, and by January 1, 2021, he had skyrocketed to $200 billion. No human being in history has gained so much paper wealth so fast. The rise continued, and in November 2021, Musk's net worth briefly topped $340 billion, enough to surpass John D. Rockefeller's 80-year reign as the richest human in modern history, after adjusting for inflation. However, this peak seems to have been an anomaly, often referred to as the peak of an Elon bubble.
The Great Decline
Elon Musk ended 2022 with a net worth of $130 billion, marking a staggering $210 billion drop in a little over a year. No human being in history has lost so much paper wealth so fast. Throughout 2023, Musk's fortune remained relatively stable in the $230 billion range, but it was clear that the volatility was taking its toll.
As we moved into 2024, Musk's financial landscape continued to shift. In just the first two months of the year, he experienced a drop of $32 billion, bringing his net worth down to $192 billion as of now. This decline highlights how quickly fortunes can change, especially in the high-stakes world of tech investments and market fluctuations.
The Current Landscape of Wealth
Unfortunately for Elon, $192 billion is not a large enough fortune to maintain his status as the world’s richest human—a title he held uninterrupted for three years and two months. Sliding into the #1 spot with a net worth of $198 billion is Jeff Bezos, whose fortunes are soaring as Amazon's stock price has doubled compared to roughly a year ago.
This shift in wealth dynamics has also seen Musk lose his position as the world’s SECOND richest human. That title is now held by LVMH Chairman Bernard Arnault, thanks to his $195 billion net worth. The competition among these billionaires is fierce, and it’s fascinating to watch how quickly the rankings can change!
Challenges in Muskland
This week has been particularly tough for Musk, with notable events affecting Tesla's share price. On Monday, Tesla shares dropped 7% after a report indicated that sales declined in February in China, where the company faces increased competition from emerging EV makers like BYD. Then, on Tuesday, Tesla’s stock price fell another 4%, primarily due to news of an arsonist setting fire to a high-voltage pylon near the company's "Gigafactory" in Grünheide, just outside of Berlin, forcing it to temporarily halt production.
These setbacks illustrate the volatility and unpredictability of the market Musk operates in. As a result, his financial status is not just a reflection of his individual success but also of broader trends and challenges in the economy and industry.
Legal and Financial Complications
When calculating Elon’s net worth, it’s important to note that we currently include $55 billion worth of options that he doesn't fully own anymore. On January 31, a Delaware judge struck down the compensation package that resulted in Elon earning those options. Thus, when we calculate Elon Musk to be worth $192 billion today, that figure includes $55 billion that has been legally voided.
The reason we still include those options is that Elon can (and will) appeal the ruling. Even if he loses the appeal, he will receive some amount, likely nowhere near $55 billion, but still significant enough to impact his net worth. This legal twist adds another layer of complexity to his financial situation that many might not be aware of.
What Lies Ahead
One could argue that $55 billion should be removed from Elon’s net worth right now. If that were the case, he would drop to $137 billion, making him the seventh-richest person in the world, just behind former Microsoft CEO Steve Ballmer's $140 billion fortune. The fluctuations in Musk's wealth highlight the unpredictable nature of financial markets and the impact of legal decisions on personal fortunes.
As we continue to watch Musk's journey, it’s clear that both triumphs and challenges will define his story. The world of billionaires is indeed a rollercoaster, and the next chapter for Elon Musk could take yet another unexpected turn!
