Elon Musk lost $ 50 billion in two days

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Elon Musk has lost $ 50 billion so far this week after Tesla shares plunged for a second straight session, slipping 11.9% on Tuesday in the wake of an unusual initiative by the electric vehicle CEO. to ask his followers on Twitter whether it should sell 10% of its stake in the company, with 58% in favor of the sale.

Elon Musk’s losses are the biggest drop in the history of the Bloomberg Billionaires Index on a 2-day basis and the biggest daily drop, overcoming Jeff Bezos’ $ 36 billion “dip” after his divorce from Mackenzie Scott in 2019.

The fall of Tesla comes amid a “turmoil” for the auto industry, starting with a poll conducted by Musk on Twitter last weekend asking his followers if he should sell 10% of his shares in the company, followed by the news that Kimbal brother sells Tesla shares for nearly $ 110 million after exercising the purchase option. The highlight was an Insider post Tuesday morning about Michael Burry, the investor who became famous from “The Big Short,” who said Musk may want to sell shares to cover his personal debts.

The losses of the last two days “cut” the lead of Musk against Jeff Bezos in the race for the richest man in the world at $ 83 billion. Musk surpassed Amazon.com founder in the list for the first time in January, and the gap between the two recently reached $ 143 billion, more than the net worth of Bill Gates, the fourth richest man in the world.

Cathie Wood’s ARK Investment Management lost more than $ 750 million in Tesla’s sell-off on Tuesday, while the founder of Oracle Corp. Larry Ellison, the company’s second-largest single shareholder, lost $ 2.1 billion.

Despite the decline, Musk’s fortune is still up 70% from the beginning of the year thanks to a strong increase in Tesla profits and a higher valuation of SpaceX. Tesla’s market capitalization exceeds 1 trillion. dollars, after its results for the third quarter significantly exceeded market expectations and the car rental company Hertz Global Holdings Inc. ordered 100,000 Tesla cars in October.

Read more:

* How much tax will Musk pay if he sells 10% of his stake in Tesla

* CNBC: Why Elon Musk would “necessarily” sell millions of Tesla shares

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