Tesla chief executive Elon Musk gets in a Tesla car as he leaves a hotel in Beijing. Reuters
Tesla CEO Faces Record Two-Day Loss Amid Controversial Tweets and Selling Activities
Elon Musk, the visionary CEO of Tesla, is weathering one of the most tumultuous weeks of his career as his net worth experienced an astonishing decline of $50 billion over just two days. This unprecedented financial blow, as reported by the Bloomberg Billionaires Index, now places his net worth at $288 billion, marking the largest two-day loss ever recorded in the history of the index.
The cascading downfall was triggered by a series of events that dominated headlines, with some directly involving Musk's own actions. It all began when the Tesla chief took to Twitter over the weekend to ask his followers if he should sell 10% of his stock to cover taxes. The overwhelming response, a resounding "yes," caused Tesla's share prices to plummet by 7% on Monday.
However, the situation took an even more drastic turn on Tuesday, as Tesla's shares experienced a staggering 12% decline. The tipping point came with a now-deleted tweet from famed short-seller Michael Burry, who suggested that Musk might be contemplating selling his shares to offset personal debts. Further contributing to the turmoil, news broke that Kimbal Musk, Elon's cousin and a director at Tesla, had sold over $100 million worth of Tesla stock just the previous week.
Despite the stock market turmoil, it's important to note that Tesla's shares are still up by a commendable 40% since the beginning of the year. Additionally, Musk's financial standing remains robust, securing his position as the richest person on the planet, leading second-wealthiest individual Jeff Bezos by a formidable $82 billion, according to the Bloomberg Billionaires Index.
Nonetheless, this recent rollercoaster of events has sent shockwaves through the financial world, leaving investors and analysts contemplating the long-term implications for Tesla's stock performance and Musk's net worth. As one of the most influential figures in the electric vehicle industry, Musk's financial decisions and public statements continue to wield substantial influence over Tesla's market performance.
As the week progresses, all eyes will be on how Musk navigates this challenging period and how Tesla's stock responds to the recent upheaval. While the past days have seen a significant decline, Tesla's position as a major player in the electric vehicle market, coupled with its ambitious expansion plans, remain pivotal factors that could shape the company's future trajectory and, consequently, Musk's net worth.
In the ever-changing landscape of finance and technology, only time will reveal the full impact of these developments. For now, both Musk and Tesla brace for the uncertainty that accompanies this historic market tumble, and the world watches closely to see how they emerge from this challenging chapter.
