ELon Musk, still the richest man on the planet, saw his net worth fall back below $200 billion to $193 billion as Tesla stock continues to slide due to an accumulation of challenges.
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That drops Musk’s net worth by 28.7% year-to-date, and to put that number in perspective, that equates to 0.92% of US GDP, according to the Bloomberg Billionaire Index.
Tesla shares have faced massive pressure due to a host of recent challenges, including Musk’s “pending” $44 billion Twitter deal. That drove Tesla shares lower on investor concerns that Musk could potentially overextend among his many companies as well as other funding factors, such as equity financing.
The company is also facing supply chain issues due to China’s COVID-19 lockdown policies and was kicked off the S&P 500 ESG Index earlier this month. “While Tesla may be playing its part in taking gas-powered cars off the road, it has lagged its peers when examined through a broader ESG lens,” according to an S&P report.
Tesla stock closed down 6.9% on May 24, but rebounded slightly on the morning of May 25. The stock is down almost 47% since the start of the year.
Adding further pressure, Twitter’s annual shareholders meeting – scheduled for May 25 – is expected to set off “fireworks between Musk and Twitter’s board”, according to analysts, who say the meeting will be the “next stage of the circus show”.
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“This circus show was a major spotlight on Tesla’s stock and has so far been a black eye for Musk on how he handled this spiraling situation, in our view, with the world watching. “Wedbush Securities analyst Dan Ives told GOBankingRates.
“We believe that with Twitter’s shareholders’ meeting on the horizon and approval of the expected deal, Musk faces a fork in the road situation in which he must decide his next step on this soap opera as may the patience of Tesla investors run out,” Ives added.
Wedbush maintained its “Outperform” view on Tesla stock, but lowered its estimates and price target to $1,000. He also expects total deliveries at 277,000, down from its original estimate of 297,000 units and revenue at $15.9 billion, down from its original estimate of $16.9 billion.
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This article originally appeared on GOBankingRates.com: Elon Musk’s Net Worth Falls Below $200 Billion Again as Tesla Stock Continues to Struggle – Time to Sell?
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