You are here: Home » International » News » Companies
Business Standard

Elon Musk loses $50 bn in 2 days on Tesla tumult in record wealth plunge

It's the biggest two-day decline in the history of the Bloomberg Billionaires Index, and the biggest one-day fall after Jeff Bezos's $36 billion plunge

Elon Musk | Elon Musk Tesla | Tesla

Sophie Alexander | Bloomberg 

Elon Musk, Tesla

has lost $50 billion so far this week after Inc. shares plunged for the second day in a row.

It’s the biggest two-day decline in the history of the Bloomberg Billionaires Index, and the biggest one-day fall after Jeff Bezos’s $36 billion plunge following his divorce from MacKenzie Scott in 2019.

Tesla’s rout comes amid a tumultuous few days for the automaker. It started when Musk asked his Twitter followers over the weekend whether he should sell 10% of his stake in the company, followed by news that his brother Kimbal sold shares just before the poll. Capping it off was an Insider report Tuesday morning on Michael Burry, the investor made famous by the movie “The Big Short,” saying Musk may want to sell shares to cover his personal debts.

The drop narrows Musk’s lead over Bezos as the world’s richest person to $83 billion. Musk surpassed the Inc. founder for the title for the first time in January and the gulf between the two recently rifted as wide as $143 billion, a figure greater than the net worth of Bill Gates, the world’s fourth-richest person.

Cathie Wood’s ARK Investment Management, whose funds have been selling shares in over the past few months, lost more than $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 slump, Musk’s fortune is still up 70% this year thanks to Tesla’s gains on the back of strong earnings growth and delivery numbers and a higher valuation for SpaceX. Tesla’s market capitalization has stayed above $1 trillion, a benchmark it hit last month after its third quarter results significantly beat market expectations and rental-car company Hertz Global Holdings Inc. placed an order for 100,000 cars.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, November 10 2021. 14:27 IST