Elon Musk buys Twitter: Bloomberg’s billionaire ranking slips unprecedentedly.
His fortune fell to just under $170 billion from $340 billion last year, a loss of $100.5 billion in just one year, according to the Bloomberg Billionaires Index. Nearly $8.6 billion was wiped off his fortune on Nov. 21 alone.
This is an unprecedented drop in the billionaire rankings. The main reason for the plunge in the billionaire’s wealth is that Tesla’s stock price has fallen below its all-time high in the past 2 years.
According to Bloomberg, as of the close on November 21, Tesla’s stock price fell 6.8% to $167.87, and its market value fell 52% since the beginning of the year.
The electric car company is grappling with strict social distancing orders in the vast Chinese market. Tesla also recently recalled more than 300,000 electric vehicles for repairs due to taillight problems, while grappling with supply chain shortages and soaring raw material prices.
EV brands also face stiff competition from rivals that also want to enter the competitive field of EV production. Especially in the US market, where the company will launch a series of new electric models in the coming years.
Recently, the American electric car manufacturer Tesla Model Y lost control and crashed into 2 motorcycles, 2 bicycles and 1 tricycle in China, killing 2 people and sparking controversy.
In response, Tesla responded that, based on what appeared in the video, the Model Y’s brake lights did not come on during acceleration, resulting in a crash. Vehicle data also doesn’t record brake pedal movements by drivers on the road.
In the U.S. market, Tesla is also facing multiple accident lawsuits related to the Autopilot self-driving system. Even the U.S. Justice Department has launched an undercover investigation after more than a dozen accidents involving Tesla’s Autopilot driver-assistance system, according to Reuters’ own sources.
In addition, since the successful acquisition of Twitter for $44 billion, Elon Musk has also become a hot topic in the media. In just a few weeks with Musk, the social networking company lost 60% of its workforce. Investors are also worried that Musk is overly embracing Tesla and distracting attention from Tesla.
“Despite spending a significant amount of time at Tesla and actively participating in the management of the company, Musk remains distracted and does not devote all of his time and energy to his electric car company,” the investor said.