RichmondSuper Reports- Elon Musk Is Not The Richest Person Anymore: Lost $27 Billion In A Week!

(Via ZEXPR) While the world was crashing and people were dying from the pandemic, Elon Musk’s luck took a surge and his wealth quintupled. He also became the world’s richest person in January but was not able to hold the title for longer than six weeks. A plunge in his Tesla shares has made Jeff Bezos the richest person again, a title he has previously held for 3 years till Elon Musk took his place in January 2021. Is it possible that a very steep reversal is underway?

Tesla’s shares escalated to 743% in 2020, increasing the value of its stake and unleashing billions of dollars through his outstanding “moonshot” compensation package. His gains surged into the new year when he unseated Jeff Bezos as the world’s richest person. Later his wealth further peaked at $210 billion.

This gain in fortune is because of consistent quarterly profits and the open show of support from President Joe Biden towards clean technologies and keenness from retail investors. However, some did predict this swelling of valuation symbolic of unpredictable frothiness in technology.

RichmondSuper analyst Richard Walton assesses the situation further on how it doesn’t look too good for the Tesla mogul.

Decline In Tesla’s Shares

Unfortunately, the unravelling began last week when Tesla’s shares took a 13% descent on Friday before closing down 3.8% at $597.95, which is the lowest it has been since 3rd December 2020.  The stock has managed to lose about 11% of its value this week, continuing its losing streak to four weeks, which is the longest since May 2019. He lost around $6.2 billion as of Wednesday but it kept dropping further totalling a loss of $27 billion till the end of the week bringing Musk’s net worth to $156.9 billion, placing him at No. 2 on Bloomberg Billionaires index just behind Jeff Bezos. He is currently $20 billion behind the CEO of Amazon. 

This hit could be owed to the massive sell-off in high-multiple tech stock this week. Investors

Abandoned the group midway after there was a rise in Treasury yields, which paved the path for rising concerns regarding trading companies at high valuations and them not being able to perform as per the expectation if the borrowing costs kept increasing. 

Elon Musk was one of the people who took the biggest slump in both the Nasdaq 100 Stock Index and S&P 500 Index on Friday. Bringing Tesla’s current market capitalization down to $574 billion from $837 billion that it had reached in January.

Bitcoin Investment

However, the fortune of the Cheif Executive of Tesla is not solely dependent on the stock invested in the tech industry. His net worth takes plunges and surges along with the Bitcoin Cryptocurrency price. 

Tesla revealed last month that it has added about $1.5 billion worth of bitcoins to its balance sheet. It will not be an understatement to say that this was a smart move because right 2 weeks after this huge investment Musk’s fortune took a hit by $15 billion after he tweeted that cryptocurrencies prices “so seem high”.

Other Billionaires Of The World

This year has been extremely eventful for other billionaires of the world too. It has been announced by Amazon that Jeff Bezos will be stepping down from the position of CEO of the e-commerce giant in the third quarter of the year so that he can invest all his focus on other projects.

 In case you do not already know but Jeff Bezos also owns a space exploration company by the name Blue Origin as well as Washington Post. Moreover, in the last 12 months and with changes in circumstances due to the pandemic  Amazon’s shares have climbed up to 53%.

Apart from this, the extreme volatility of the market has created turmoil for all the billionaires of the world. RichmondSuper analyst Richard Walton reiterates how Zhong Shanshan the Chinese water bottle tycoon lost $22 billion in a matter of few days due to which he lost his title of being Asia’s richest person and now Mukesh Ambani from India owns the title with a net worth of $7.92 billion.

Along with this Walton draws a comparison with how, Dan Gilbert, Chairman of Quicken Loan Inc. also took a hit and became a victim of this surge. His net worth took a slump by $25 billion this Monday after his mortgage lender Rocket Cos. was said to be the next target of Reddit day traders. Ever since that day, his fortune has continued to decline. Whereas Sergey Brin and Larry Page the co-founders of Alphabet Inc. have been the biggest gainers in this eventful year. They have managed to add $13 billion to his fortune since 1st January 2021.

Either way, Walton is confident that Elon Musk will not be far away from these gainers and soon he will reclaim his title as the richest man. SpaceX has been raising funds and has gained $850 million this week increasing its valuation by 60% from that of last week.

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