It is not yet the third business day of the week in the US however Elon Musk, the celebrity CEO of Tesla Inc has already lost more than $50 billion this week after registering a steep decline of 16% in two days in the shares of Tesla.
It is by far the biggest decline in two consecutive days since the inception of the Bloomberg Billionaires Index.
The steep decline in Musk’s net worth is the biggest one-day fall after Jeff Bezos’s $36 billion declines when he announced his divorce from MacKenzie Scott in the year 2019.
Elon Musk loses $50 Billion in just two days due to a big decline in the share price of Tesla
Tesla’s stock price fell dramatically this week following a tweet from Musk on a weekend where he asked in a poll to his Twitter followers if he should sell 10% of his holding in Tesla to pay taxes.
The response to the poll was a resounding yes, that sent the stock plunging as much as 7% on Monday’s trading session.
Below is the poll shared by Elon Musk on his Twitter handle:
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.
Do you support this?
— Elon Musk (@elonmusk) November 6, 2021
There was another reason for the drastic fall as cited by some market analysts that notorious short-seller Michael Burry has given a hint in his tweet that Musk may seek to sell his shares so that he can meet his personal obligations.
Michael Burry later deleted his tweet. Also, there were reports in the media that Kimbal Musk, Elon’s cousin and EV business director, sold Tesla shares worth more than $100 million in the open market last week.
Following the steep fall in Tesla shares, Musk’s lead as the world’s richest person is still intact even though the gap narrowed over Bezos.
According to the Bloomberg Billionaires Index, Elon Musk is currently worth $323 billion notwithstanding the losses.
Year to date, Elon Musk has added a whopping $100 billion+ to his fortune due to a steep rise of 45% in the price of Tesla shares as investors continue to place bullish bets that electric vehicles will be the future of auto companies. SpaceX, another company founded by Elon Musk in 2002, is the world’s second most valuable private company.
Tesla’s share price jumped 13% to hit an all-time high on October 25th after the company announced that it has bagged orders from Hertz Global Holdings Inc to deliver 100,000 vehicles. Elon Musk added approximately $36 billion to his fortune on that day which is the highest ever amount of earnings in a single day in the history of corporate America. Tesla is the world’s first automotive company to join the elite club of trillion-dollar companies.
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