Tesla is one of the most popular companies in the world, with a market capitalization of over $60 billion. Tesla’s CEO, Elon Musk, is also one of the most controversial figures in business today. Most notably, Musk is known for his work on electric cars and space travel. However, his recent Twitter altercation with a Twitter boss has caused his net worth to drop by $200 billion. What happened? On August 7th, Musk tweeted that he had “funding secured” to take Tesla private at $420 per share. Two days later, Tesla’s Twitter boss sold all of his stock in the company, causing Musk’s net worth to plummet. This news has caused a lot of speculation about what actually happened and why it matters. However, for now, it’s just another example of how volatile the stock market can be.
Elon Musk’s Net Worth Drops $200 Billion
Amidst Elon Musk‘s recent Securities and Exchange Commission (SEC) public filings, it was revealed that his net worth has decreased by $200 billion due to the sale of Tesla shares. The Tesla sale was made just days before Musk’s SEC filing, raising questions about whether or not he had been truthful about his holdings.
While it is still unclear as to what caused the stock sale, the SEC statement released following the filing did say that Musk “did not accurately describe how much equity he owned in Tesla and how its securities were titled.” The SEC is now investigating whether or not this was intentional deception.
This decrease in net worth comes after a year of exceedingly impressive achievements for Musk. In October of last year, he announced his plans to build a hyperloop tunnel between Los Angeles and San Francisco. This project received a lot of media attention, leading to a surge in Tesla stock prices. However, despite this success, Tesla’s overall financial situation has taken a hit due to higher production costs and declining demand for electric cars.
Elon Musk’s Net Worth Drops $200 Billion After Tesla Stock
Tesla’s share price fell by more than 5% on Thursday after the tweet from Musk’s Twitter account that he had sold TSLA shares.
The market value of Tesla’s stock was $379 billion at the time of the sale, which is down from its market value of $420 billion a week ago.
Musk’s tweet comes just days after he said on Twitter that he was considering taking Tesla private at $420 per share.
His tweet caused a massive sell-off in Tesla’s stock, with the company losing over $19 billion in value in two days.
This isn’t the first time Musk has faced criticism for his tweets. In August, regulators fined him and his company SpaceX for violating securities laws.
What happened?
The tech billionaire’s fortune took a hit following the sale of shares in his electric car company, Tesla, which saw him lose out on over $200 billion.
The sell-off comes just weeks after it was reported that Mr. Musk was considering taking Tesla private at a value of $52 billion – a move that would have seen him become the richest man in the world.
However, after markets reacted skeptically to the news and Mr. Musk faced calls from analysts to explain his motivation, he abandoned the plan.
The Implications
Elon Musk’s net worth dropped by $200 billion after Twitter boss sells Tesla stock
Eliot Higgins, a senior fellow at the Atlantic, tweeted on Saturday that Tesla CEO Elon Musk was selling $1 million of his company’s stock. This caused Musk’s net worth to drop by $2.7 billion according to Forbes. Higgins’ tweet cited an SEC filing that showed that Musk bought about 1 million shares of Tesla stock in the last three months. Tesla has been struggling recently, with its share price dropping from over $300 per share in September 2017 to around $220 per share as of press time.
Worried about your portfolio?
If you’re worried about your portfolio, there are a few things you can do to minimize the impact of a sell-off. First, make sure all your investments are in registered accounts with reputable firms. Second, consult a financial planner or investment advisor to get an overview of your individual portfolio and make decisions about where to allocate resources. Finally, Nirmalbang.com provides free guidance on how to protect yourself in market crashes.
