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Musk Loses $4.9 Billion in Tesla's Worst-Ever Start to a Year

Published 05/31/2019, 08:59 AM
Updated 05/31/2019, 09:55 AM
© Bloomberg. Elon Musk, co-founder and chief executive officer of Tesla Inc., speaks during an unveiling event for the Tesla Model Y crossover electric vehicle in Hawthorne, California, U.S., on Friday, March 15, 2019. Musk said the cheaper electric crossover sports utility vehicle (SUV) will be available from the spring of 2021. The vehicle's price will start at $39,000, a longer-range version will cost $47,000. Photographer: Bloomberg/Bloomberg

(Bloomberg) -- Tesla (NASDAQ:TSLA) Inc. 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 43% this year through Thursday, lopping $4.9 billion from the value of Musk’s stake, as Wall Street has grown increasingly skeptical about consumer demand for the company’s electric vehicles. Musk, 47, is now ranked No. 46 on the Bloomberg Billionaires Index with a net worth of $19.7 billion, down from 29th at the start of the year.

The rout has erased a total of $7.8 billion from the stakes of Tesla’s four biggest individual shareholders -- Musk, Tencent Holdings Ltd., Saudi Arabia’s Public Investment Fund and Larry Ellison -- including $2.7 billion in May alone. Tesla, Tencent and PIF didn’t respond to requests for comment. Ellison declined to comment.

Ellison, the Oracle Corp (NYSE:ORCL). co-founder who has been a vocal defender of Musk, bought 3 million shares last year and joined Tesla’s board in December.

JPMorgan Chase & Co (NYSE:JPM). also may be exposed. Saudi Arabia’s Public Investment Fund owns about 5% of Tesla but hedged most of its holding in January through an arrangement with the bank, according to the Financial Times. Tesla’s share price has tumbled 46% since the Jan. 17 transaction, meaning the value of PIF’s holding has shrunk by more than $1.3 billion in that span. Jessica Francisco, a spokeswoman for New York-based JPMorgan, declined to comment.

Latest comments

The important thing is not Musk's personal wealth, but Tesla's mission of accelerating sustainable transportation. I sure hope they succeed, for the benefit of everyone on the planet.
no two ways about it
Musk is a true patriot and a worthy citizen of his country. purposefully working to free the USA from dependence in space from russia, and oil dependence from rogue and sponsors of terrorism countries
I sell stocks from $ 300. target 0. Tesla is a pyramid. I have always talked about this.
tesla is a simple but innovative project in which absolutely everything is easily calculated. This is not biochemistry, where you can fool investors. when Musk began brent cost 100, now 64, and was 54. China, Europe adopted laws on the forced transition to electric transport.
I buy stocks like tlry from 50 to 300 and tsla from 50 to 320 now bynd from 60 and it will go to 300 in a year and my alec from 16 to soon to be alzheimer cure
 Such tools are not available to me, but I think it need a scientific analysis of ideas. I, as a biochemist, often see the crazy ideas of some companies, as well as attempts to finance basic research by deceiving investors.
Tesla need or high oil price, or state program transition to electric cars
or an increase in battery capacity by 30% more
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