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Tesla boss Elon Musk’s fortune reportedly shrank by $ 27 billion last week, when the impressive rebound in electric car maker shares was reversed.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA, INC. | 563.00 | -34.95 | -5.84% |
Musk suffered a severe loss of paper between Monday and Friday, when a sale of major technology stocks caused Tesla’s share price to fall nearly 17 percent in four days, according to Bloomberg calculations.
The shares of the Silicon Valley giant have fallen about 15 percent so far this year and ended last week at $ 597.95, marking its lowest level since the beginning of December. Tesla fell another 2.3 percent at the start of Monday’s trading session, before rising recently by around 2.7 percent to $ 614.17.
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Despite the recent fall, Musk, 49, is still ranked as the second-richest person in the world on the Bloomberg Billionaires Index, with a net worth of about $ 157 billion, of which $ 102 billion in Tesla shares.
But Musk is now about $ 20 billion behind Amazon boss Jeff Bezos, from whom he won first place in late February, Bloomberg said.
Tesla boss Elon Musk’s fortune reportedly shrank by $ 27 billion last week, when the impressive rebound in electric car maker shares was reversed.
Musk’s wealth exploded last year, when Tesla posted six consecutive quarters of profit, delivered nearly 500,000 cars and joined the S&P 500 stock index. The growth helped fuel a meteoric rise in the stock price of the pioneer carmaker.
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But Tesla’s shares have suffered steep losses in recent weeks amid concerns about its impressive valuation and increased competition from start-up companies like China’s Nio, as well as from larger rivals such as General Motors. The company is also battling a global shortage of computer chips that has affected car manufacturers around the world.
Tesla also faced doubts about its $ 1.5 billion investment in bitcoin, which Musk called “less liquidity stupid than money”, despite considering that the price of the cryptocurrency seemed too high.
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But Tesla is still the dominant player in an electric vehicle industry that can account for 20% of world auto sales by 2030, argued Dan Ives, an analyst at Wedbush Securities.
“Despite the white knuckles today, we believe that Tesla will reach a market capitalization of one trillion dollars in 2021, given the secular high-rise EV thesis set to happen in the coming years,” said Ives in a research note Monday.