Elon Musk Lost $15B In A Single Day And The Cause Could Be One Of His Own Tweets
Tesla Inc (NASDAQ:TSLA) CEO Elon Musk is no longer the world’s richest person, according to Bloomberg Billionaires Index.
What Happened: Musk was replaced by Amazon.com, Inc (NASDAQ:AMZN) CEO Jeff Bezos as the richest person on the list after Tesla shares fell 8.6% on Monday eroding $15.2 billion from his net wealth, according to Bloomberg.
A tweet by Musk over the weekend which touched on the high valuation of Bitcoin (BTC) and Ethereum (ETH) furthered the entrepreneur’s decline in wealth.
That said, BTC & ETH do seem high lol
— Elon Musk (@elonmusk) February 20, 2021
Musk falls to second place on the Bloomberg Billionaire’s Index with a net worth of $183.4 billion, while Bezos has a net worth of $186.3 billion.
Why It Matters: This month, Tesla invested $1.5 billion in Bitcoin and said it expects to accept the cryptocurrency as a means of payment in the near future.
Tesla’s $1.5 billion BTC investment is worth nearly $2.5 billion, a gain of almost 70%, at the press-time BTC price of $52,040.21.
Market strategist Peter Schiff — a noted gold bug and a Bitcoin critic— commented on the decline in the prices of Tesla shares post the company’s BTC purchase.
Two weeks after @elonmusk announced that he spent $1.5 billion of shareholder money buying Bitcoin, #Tesla stock entered a bear market, plunging 20% from its all-time high set on Jan. 25th, and 16% since disclosing the #Bitcoin buy. Not an example other CEOs will likely follow!
— Peter Schiff (@PeterSchiff) February 22, 2021
Musk and Bezos have been trading places as the world’s richest persons since January 2021.
Price Action: Tesla shares closed nearly 8.5% lower at $714.50 on Monday and fell almost 0.5% in the after-hours session. On the same day, Amazon shares closed 2.13% lower at $3,180.74.
Photo courtesy: Forbes via Wikimedia
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