World richest man Elon Musk has been having a tough week on his business front as his automobile company Tesla lost $50 billion in 2 days. The shares of Tesla plunged by 16% in mere 2 days.
The massive loss occurred because of the tweets and headlines which cost the automobile company a huge decline in sales and loss in the share price.
According to Bloomberg, $50 billion is the largest decline in share price in the shortest span of time in the history of the index.
It all started with a tweet of Elon Musk earlier this week when he asked his followers whether he should sell 10% of his stock which he has kept to pay taxes. The result was an astounding yes in majority which caused the share price of Tesla to fall a record 7% by Monday.
The share price continued to fall on Tuesday as Michael Burry tweeted that Elon Musk might consider selling his shares to cover the debts incurred by him. Musk deleted his initial tweet later but it ignited the current plunge of Tesla stock price.
Share prices dropped further to 16% when a cousin of Musk and director of an EV company, Kimbal Musk sold out his more than $100 million of stock in Tesla last week.
Since 2010, when Tesla stocks became public on the Nasdaq exchange, Elon Musk sold his personal shares only twice. Once he sold 1.4 million shares for $23 million and later in 2016 he sold about 2.7 million of his shares for a whopping $593 million.
Analysts at Jefferies and Wedbush securities still predict that Tesla will regain its momentum and the stock is expected to soar a whopping 65% by next year targeting the third quarter of 2022.
Despite the ongoing crisis in the world of stock market, Elon Musk remains the richest man on planet earth while Amazon owner Jeff Bezos follows behind at $122 billion. Elon Musk’s net worth is $323 billion at the moment even after facing $50 billion loss in mere 2 days.
