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Elon Musk Loses $16.3 Billion As Tesla Shares Drop By 21%

Tesla Inc. CEO Elon Musk has dropped two places in the world’s richest people ranking after his company lost 21% value of its shares. He is now the sixth richest person in the world.

 

Musk had seen his net worth rise astronomically in 2020 and was ranked third in July 2020. However, in recent weeks, Tesla has taken lots of hits after its shares continued to plunge. On Tuesday 8th September 2020, it was trading for lesser than 21%.

 

Bloomberg reports that Tesla’s shares loss was likely because of an alleged partnership between Nikola Corp. and General Motors Co. General Motors are said to have invested $2 billion in Nikola Corp. and both of them are working on an electric truck.

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This deal will make GM and Nikola a formidable force and likely attract more investors. General Motors saw its shares rise by 8% while Nikola shares rose by 41%.

 

Elon Musk wealth is mainly tied to Tesla and once it stumbles, it affects his net worth as well. He lost a total of $16.3 billion, which represents the largest single-day loss in the history of Billionaires on Bloomberg’s Billionaire Index. Musk is now below Jeff Bezos, Bill Gates, Mark Zuckerberg, Bernard Arnault and Warren Buffet in the pecking order.

 

In the same day, CEO of Nongfu Spring Co. Zhong Shanshan, a Chinese bottle-water company, made $30 billion after the company’s initial public offering. Zhong is now ranked 22nd and he is worth $50.9 billion. He is currently the third richest person in China below Jack Ma and Pony Ma.

 

The recent volatility of tech shares have caused panic among stock traders, especially over Tesla stocks.

 

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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.

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