After Tesla Inc. shares fell for the second day in a row, Elon Musk has lost $50 billion this week. It’s the greatest two-day drop in the Bloomberg Billionaires Index’s history, and the worst one-day drop since Jeff Bezos’ $36 billion drop after his divorce from MacKenzie Scott in 2019.
Tesla’s slide follows a difficult few days for the company. It all started when Musk asked his Twitter followers if he should sell 10% of his company’s stock over the weekend, followed by reports that his brother Kimbal had sold shares immediately before the vote.
Topping it off, an Insider article Tuesday morning said Musk may want to sell shares to settle personal obligations, citing Michael Burry, the investor made famous by the film “The Big Short.”
Musk’s advantage over Bezos as the world’s richest person has shrunk to $83 billion as a result of the decline. Musk eclipsed Jeff Bezos, the founder of Amazon.com Inc., for the first time in January, and the gap between the two has lately widened to $143 billion, a sum bigger than Bill Gates’ net worth, the world’s fourth richest person.
Cathie Wood’s ARK Investment Management lost almost $750 million in Tuesday’s selloff, while Oracle Corp. founder Larry Ellison, the company’s second-largest individual shareholder, lost $2.1 billion.
Despite the downturn, Musk’s fortune has risen by 70% this year, mainly to Tesla’s gains, which have been fueled by solid profits and delivery statistics, as well as a greater value for SpaceX. Tesla’s market value has remained over $1 trillion, a level it reached last month after the company’s third-quarter earnings exceeded forecasts and rental-car giant Hertz Global Holdings Inc. made an order for 100,000 Tesla automobiles.
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