Elon Musk Loses $50 Billion In Biggest Fall After Jeff Bezos's 2019 Plunge

Elon Musk Loses $50 Billion In Biggest Fall After Jeff Bezos’s 2019 Plunge

Tesla shares fell sharply Monday morning after Chief Executive Elon Musk, the world’s richest person, said he would abide by the results of his Twitter poll and sell 10% of his stake in the electric-carmaker, stoking investor concerns over how prices could react to such a massive scale, but one expert says the largely expected transaction should be “digestible” for the stock—even if unprecedented.   

Despite the slump, Musk’s fortune is still up 70% this year thanks to Teslas gains on the back of strong earnings growth and delivery numbers and a higher valuation for SpaceX.

Elon Musk has lost $50 billion so far this week after Tesla 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 plunges following his divorce from MacKenzie Scott in 2019. 

Tesla’s route 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 percent of his stake in the company, followed by news that his brother Kimbal sold shares just before the poll.

Tesla’s route 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 Amazon.com 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. 

Musk’s fortune tanked by about $15.5 billion Tuesday, falling to $288.8 billion and racking up two-day losses of roughly $30 billion. (He’s still the world’s richest person, worth $85 billion more than Amazon founder Jeff Bezos.)

Triggering the two-day stock decline, Musk on Saturday called on Twitter users to help decide whether he should sell 10% of his roughly 23% stake in Tesla in response to a short-lived proposal in Congress that would have taxed billionaires’ unrealized stock gains to help curb tax avoidance among the ultrawealthy. 

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