Elon Musk’s Net Worth Falls $15 Billion As Tesla Shares Drop 9% In One Day
Elon Musk has slipped back down to the second spot on the world’s richest list after his net worth dropped by $15 billion.
Tesla shares fell by 9% yesterday, February 22, marking the company’s biggest one-day drop in value since the end of September. As a result, Musk saw his mighty fortune decrease to $183 billion, placing him firmly behind Amazon owner Jeff Bezos.
The drop comes after the electric-vehicle maker made the decision to halt orders for a cheaper version of its Model Y SUV.
As per Business Insider, Tesla has now removed the car from its online configurator just a month after its launch. At this time, it is unclear if the decision is temporary or permanent.
Earlier this month, Tesla cut the price of its Model Y SUV from $41,990 to $39,990.
Over the weekend, Musk tweeted that bitcoin and Ethereum prices ‘seem high’. In the days that followed, Bitcoin dropped 11% on Tuesday to $48,016 while Ethereum fell 15% to $1,521.
This shortfall could have contributed to the decline in Musk’s net worth, Business Insider reports.
Musk’s net worth has seen constant fluctuations in recent months. At the beginning of February, he became become $11.5 billion richer after tech stocks skyrocketed.
Then, on February 8, Tesla announced it had moved 8% of its reserve, a value of $1.5 billion, into Bitcoin.
However, experts were quick to weigh in on the dangers of such an investment.
‘It will add volatility to the stock due to exposure to bitcoin. This is better for bitcoin than it is for Tesla,’ King Lip, chief strategist at Baker Avenue Wealth Management, told Reuters.
Yesterday, US stockbroker and Bitcoin cynic Peter Schiff, tweeted: ‘Two weeks after @elonmusk announced that he spent $1.5 billion of shareholder money buying Bitcoin, #Tesla stock entered a bear market, plunging 20% from its all-time high set on Jan. 25th, and 16% since disclosing the #Bitcoin buy. Not an example other CEOs will likely follow!“
Musk didn’t have much to say, simply replying with an emoji of an aubergine.
Cryptocurrency expert Paolo Ardoino, chief technology officer of trading platform Bitfinex, said fluctuations like this can be expected in a relatively new market.
‘Such criticism misses the point and the profound impact it is starting to have. For many of the battle-tested exchanges that have weathered the market fluctuations, volatility isn’t new and is to be expected in such a young market,’ he said of Bitcoin.
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