Elon Musk Loses $16.3 Billion In Just 6 Hours
Tesla CEO Elon Musk Loses Record $16.3 Billion In A Single Day
Bloomberg’s Billionaires Index reported the largest single-day loss ever, with Elon Musk losing approximately $16.3 billion USD.
The report comes after Tesla stock plummeted by 21 percent, amounting to about a $80 billion drop in market value, far more than the combined value of General Motors Co and Ford Motors Co.
According to the New York Times, Tesla was recently excluded from the S&P 500 index, which measures the stock performance of 500 large companies, contributing to their falling share prices.
The stock closed 21.06% lower, while fellow electric automaker Nikola Corp jumped more than 40% after General Motors said it was acquiring an 11% stake in the company.
Wall Street analysts and investors widely expected Tesla to join the S&P 500 after the company posted its fourth consecutive profitable quarter in July, clearing a major hurdle for its potential inclusion in the benchmark stock index.
Shareholders have long been wary of Musk’s impetuous decisions and statements and this news isn’t likely to alleviate these concerns.
Still, despite the 21% percent drop on Tuesday, Tesla shares rose by 295% this year following the company’s first reported annual operating profit in 2019.