Elon Musk is one of the most prominent figures in the tech world today. He is the CEO and founder of Tesla, Inc., a company which specializes in Electric cars, energy storage, and solar power products. His net worth has recently taken a hit, as the market share of Tesla Inc. has seen its steepest drop since October. This has caused his net worth to fall from the top spot of the world’s richest person list, to a current net worth of $185.8 billion.
The main reason for this dip in Musk’s net worth is attributed to Tesla’s market share. On Tuesday, Tesla’s market shares fell by 6 percent and are now at $140.86, lower than it has been in the last two years. Reports suggest that Musk’s tendency to be distracted by his Twitter activity is a major contributing factor to the dip in Tesla’s stock and his net worth.
In response to Ross Gerber’s tweet stating, “Tesla stock price now reflects the value of having no CEO. Great job Tesla BOD – Time for a shake-up. $tsla,” Musk replied, “In simple terms: As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are not guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop.”
Tesla’s market value has also dropped below the half-trillion dollar mark for the first time. It is uncertain what Musk will do to get things back on track. Recently, Musk polled Twitter to ask if he should resign as CEO. While it has yet to be seen what the outcome of this poll will be, it is clear that investors have become wary of Musk’s behavior and its effect on Tesla’s stock.
It is unclear whether Musk will regain his title as the world’s richest person or not. However, one thing is certain, the tech mogul’s future is uncertain and Musk must take steps to restore investor confidence in Tesla’s stock. Only time will tell whether Tesla’s stock and Elon Musk’s net worth will recover.