Hammad Khalid
The fortune of the world’s most famous personality just plunged by more than $20 billion since his controversial appearance on SNL (Saturday Night Live). Not because he got pretty bad reviews for his performance.
Who doesn’t know Elon Musk? In case you don’t! He’s the founder of PayPal and aerospace transportation services company SpaceX. He was one of the early investors in Tesla, an electric car company, and now the firm’s Chief Executive Officer.
According to Forbes, Musk’s drop in wealth on Thursday is a combination of two of Musk’s big financial interests: Cryptocurrencies like dogecoin or bitcoin, and Tesla stock – losing the value that is driving down his overall net worth.
Shares of Tesla have fallen from 15% so far this week and trading at roughly $571 per share. Musk’s net worth by $20.5 billion to $145.5 billion as of market close on Thursday, according to Forbes’ estimates. He remains the third-richest person on the planet, just slightly ahead of Microsoft co-founder Bill Gates, whose fortune stands at an estimated $127.6 billion.
Cryptocurrency market was smashed badly when Musk’s stated on Twitter
Tesla would stop accepting bitcoin as payment for its electric vehicles.
Elon Musk
You can say that the crypto market revolves around Musk’s tweets. The moment he tweets something about business, traders are quick to react while just a few moments after taking a U-turn, the price of Bitcoin subsequently plunged by as much as 17%, to below $50,000, on Thursday morning following Musk’s announcement.
This tweet shows show Crypto investors can get in trouble by just a tweet. One second up, next second down. You don’t even know how the market works! Wall Street analysts have warned that Musk’s latest moves are confusing crypto investors and causing additional volatility for Tesla’s stock, which has already struggled over the past month.
According to Reuters, amid rising inflation fears in the stock market, shares of Big Tech companies and electric vehicle makers like Tesla have led the recent sell-off. Tesla’s stock has also come under pressure amid bad news in China, On Tuesday, the company halted plans to buy land and expand its Shanghai factory, due to uncertainty around U.S.-China relations.
Musk owns a 21% stake in Tesla plus a stake in SpaceX, which remains a private company. Forbes notes that thanks to a generous Tesla compensation plan (which paid Musk about $11 billion last year) and vesting stock options.
Source: The Wrap
Musk isn’t a stranger to volatility in markets, of course – earlier in the year he lost an estimated $30 billion after Tesla’s stock tanked but he quickly made that back, and then some. It’s doubtful he won’t rebound from this financial hurdle soon. At $145.5 billion, Musk is still nearly $110 billion richer than he was a year ago.
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