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

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

Musk Loses $4.9 Billion in Tesla's Worst-Ever Start to a Year
Elon Musk, chief executive officer and co-founder of Tesla Motors Inc. (Photographer: Albin Lohr-Jones/Pool via Bloomberg)

(Bloomberg) -- Tesla 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. co-founder who has been a vocal defender of Musk, bought 3 million shares last year and joined Tesla’s board in December.

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

JPMorgan Chase & Co. 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.

To contact the reporter on this story: Tom Metcalf in London at tmetcalf7@bloomberg.net

To contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, ;Craig Trudell at ctrudell1@bloomberg.net, Peter Eichenbaum

©2019 Bloomberg L.P.