Elon Musk, the wealthiest man in the world has the misfortune that as of Wednesday, May 25 his net worth fell to a value of $193 billion. Being on news is now a daily thing for Musk as he never stops sharing his thought and so his controversies. But what is the reason behind this sudden fall?
Fall of Tesla and Twitter shares
Tesla shares fell almost 7% on May 24 as the company’s manufacturing unit is hampered by the ongoing coronavirus lockdowns in China. Tesla falls buying and selling at $1,145 a share. Tesla sank to its lowest charge of $620.57 a percentage earlier than last at $628.16.
Twitter rarely fared higher on May 24. Its inventory rate fell 6%, ultimate at $35.76 — its lowest the fact of March 16. Twitter inventory has fallen 17.6% whilst Tesla stocks have dropped via way of means by 40.8%. Both companies’ losses have exceeded that of the S&P 500, which has shed 17.5% yr to date because of the beginning of the yr. Twitter stocks had fallen 31.1% due to the fact ultimate at an excessive of $51.70 on April 25 — while the company’s board of administrators usually Musk’s $44 billion buyout offer.
Musk bought his 9.2% stake in Twitter, or 73.12 million shares, at a weighted average price of $36.16. At the current stock price, Musk would lose $40.7 million on his investment. That’s a stark swing from the $1.14 billion gain from the April 25 closing price of $51.70.
Read more: These are the Changes Elon Musk May Bring After Buying Twitter
Elon Musk has been in the news for a few weeks including his involvement in the Amber Heard case and allegations of sexual harassment by an air hostess back in 2016. It cannot be denied that if the world is peeping on a person’s daily activities, the person must remain clean from all sides, especially if it’s a criminal offense. Musk’s recent controversies against two females put him into a witness box.
Recently, one of his flight attendants claimed of been sexually harassed in 2016 by Musk on a private jet. According to a report on the website BusinessInsider, SpaceX paid the accuser $250,000 not to file a lawsuit over the alleged incident.
Musk has additionally been in the information for being part of the Johnny Depp and Amber Heard case trial. His call turned into in truth dragged into the trial through Johnny Depp, who accused him of getting an affair with Heard at some point in his 2020 libel case in the UK.
However, the tech billionaire later refuted the claims “Cara and I are friends, however, we have got in no way completed intimate things, she’ll verify… I need to verify once more that Amber and I only commenced courting about a month after submitting for divorce. I turned into in no way near her at some point of her marriage.“
Such a list of controversies against running a successful business web can only bring the downfall as people feel unsafe investing their money as well as time on a person who’s been on news for bad reasons.