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- Elon Musk’s net worth has plunged below Berkshire Hathaway this year.
- Twitter acquisition is affecting Tesla share price.
- TSLA stock was trading at the market price of $197.97 at the time of writing.
Tesla Falls Below Berkshire Hathaway
The power of social media is really something and the recent fall of FTX crypto exchange is proof of this potential. It took only a few tweets from the largest digital asset exchange to wipe the company off the map. But Elon Musk’s Twitter acquisition has caused the users to leave the platform and created speculation whether the platform will remain as strong as it was before. And all this havoc is affecting his net worth and Tesla stock price significantly. However, he is still the richest person on the planet.
Bloomberg reported that his net worth has come down to around $174 Billion from $340 Billion in a year. Tesla (NASDAQ: TSLA) has shed over 50% in its price which translates to around $600 Billion over the year. The company now values below the Oracle of Omaha, Warren Buffet, owned Berkshire Hathaway having a net worth of $680 Billion currently.
The investors already predicted the present conditions as the Tesla CEO had lessened his focus on his EV making company. They feared that he may go on to sell more TSLA shares (which he eventually did) which may further decline share price. It appears like his Twitter deal has brought a lot to the table.
According to a Reuters report, Elon Musk has sold about $36 Billion worth of TSLA stock. Recently, he admitted that he sold shares worth $3.5 Billion, pushing the value of the sold stocks since Twitter acquisition to $20 Billion. It’s still worth thinking what the Tesla CEO is thinking?
TSLA Stock Price Analysis
TSLA stock price started rising during April 2022 where it maintained a resistance level around $390. Though the resistances changed during this period, Tesla share price had a support on $195 levels. It bounced a couple of times during May and July in 2022. It slid down the $315 resistance in September back to its support.
Now, this is an interesting timeframe as a couple of stocks fluctuated inversely following the thrilling speculations about the social media giant’s acquisition. The month saw Tesla share price coming back to its support levels, while Twitter stock price traded as high as $54 during the month before its delisting from NYSE.
TSLA stock rejected its support during the first week of November 2022 and is trying to reinforce back into the defending zone. Tesla share price was trading at the market value of $195.97 at the publication time. Elon Musk may put efforts into Twitter’s renovation, but it may cost him in the long run.
Elon Musk recently recalled around 40K 2017-2021 ModelS and ModelX due to the technical issues in the power steering assist. The vehicle was underperforming off-road, causing the automobile to run out of power. Demand for electric vehicles is getting bigger around the globe and Tesla CEO needs to focus more on what’s fruitful for his company.
According to a report from a research and consulting company, Cox Automotive, EVs are currently the fastest growing segment in the automobile industry. Electric vehicles sales have risen from 2.9% to 5.6% in 2021. It appears like the EV buyers are more into climate change but lower costs strikes more appealing to them.
The point we are trying to make here is that Tesla’s electric powered cars average $99,290 in terms of cost, making it unaffordable for the middle class. Apart from exotic EVs, Elon Musk should think about making something for the middle-income group too as it may help TSLA stock
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
