Elon Musk net worth is plummeting due to Tesla stock sell out
Elon Musk, the world’s richest person, has a huge drop in his net worth. The billionaire lost a whopping $50 billion after Tesla shares plummeted for two days in a row.
While Musk’s plunging shares took a toll on his net worth, it’s also the biggest drop in the Bloomberg Billionaires Index record. Moreover, it’s also the largest one-day fall following Jeff Bezos’s net worth plunge worth $36 billion. It happened in 2019 after Bezos’s divorce from Mackenzie Scott.
Despite Tesla’s turbulent plunge, the automaker has been posting about its tumultuous few days. Just earlier this weekend, Musk posted a Twitter poll asking his followers whether Tesla should sell 10% of their shares. A few minutes after the post, Musk’s brother Kimbal sold some of his shares.
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.FEATURED STORIES
Do you support this?
— Elon Musk (@elonmusk) November 6, 2021
To cap it off, an Insider report about Michale Burry’s statement came out. The investor/actor from the movie “The Big Short” says that Musk may want to sell shares to pay for his debts.
Although the dip reduces Musk’s lead over Bezos on the world’s richest person bout, Musk has already edged over Amazon’s CEO in January. It’s the first time the Tesla CEO surpassed Bezos at $83 billion. Though the difference between the two has gone as wide as $143 billion. A huge figure which is far greater than Bill Gates’ net worth making Gates the world’s 4th richest person.
After Musk’s proposal of selling 10% of his Tesla shares over the weekend, Tesla stock closed down at 12% on Tuesday. This extends his losses on a second day.
Elon Musk letting Twitter decide whether he sells $26 billion of Tesla stock might be the biggest flex of all time 😂 pic.twitter.com/4FIzn56TROADVERTISEMENT
— Joe Pompliano (@JoePompliano) November 6, 2021
One of the investors, Cathie Wood’s ARK Investment Management, has been selling shares in Tesla these past few months. They had lost more than $750 million in Tuesday’s selloff. While Larry Ellison, Oracle Corp founder also lost $2.1 billion.
While stocks drop at nearly 5% on Monday, Tesla is still on a positive upward trend until the end of the year. Although the drop is one of its most significant this year. But with the automaker’s report of improved automotive margins, shareholders don’t have much to worry about. As Tesla is still on its tracks with more than 47% rise of share this year. It was even doubling from last year.
Despite the plunge, Musk’s wealth is still up 70% this year. Credits to Tesla’s gains behind stable earnings growth, a higher valuation of SpaceX, and delivery numbers. Tesla’s market value is still at $1 trillion. The company was able to hit that benchmark thanks to the market expectations brought about by Hertz Global Holdings Inc. The rental car company ordered 100,000 units of Tesla cars.
Even the investors and shareholders have a positive outlook for Tesla’s stock this year. Since October 28 following the $1 trillion market cap, former and current board members have sold hundreds of millions of dollars worth of Tesla stock.