Markets and stocks are affected by all kinds of events, and some are even unexpected. To show you what we’re talking about, we wanted to highlight what has happened to Elon Musk’s wealth just a week after he made a controversial appearance on Saturday Night Live. Since then it has lost more than $ 20 billion.
What happened to Elon Musk on Saturday Night Live?
The fortune of Tesla billionaire co-founder and CEO Elon Musk has plummeted by more than $ 20 billion since last weekend. Back then, Musk made a controversial appearance on Saturday Night Live.
Musk’s wealth was worth an estimated $ 166 billion when he appeared on the sketch comedy show. This made him the richest person I have ever featured. On the show he revealed that he has Asperger’s, poked fun at his bold business plans. But, he also talked about the recent rumors around cryptocurrencies like Bitcoin and Dogecoin and that may have affected.
While Musk has publicly promoted cryptocurrency in the past, at one point in the show he called Dogecoin a “hustle and bustle.” Cryptocurrencies have since taken a hit, with the value of Dogecoin falling more than 30% in 24 hours.
Also, Tesla shares have fallen 15% so far this week. This is what has led to the reduction of Musk’s net worth by $ 20.5 billion. With this, the figure we mentioned earlier dropped to US $ 145.5 billion, according to Forbes estimates. Yet he is still the third richest person on the planet, just ahead of Microsoft co-founder Bill Gates.
Other controversial comments from the entrepreneur
Last week Tesla also took a sudden turn from cryptocurrencies. On Wednesday night, Elon Musk announced on Twitter that he would indefinitely suspend acceptance of Bitcoin as a means of payment.
The justification he offered had to do with his concerns about the “increasing use of fossil fuels for Bitcoin mining and transactions.” Subsequently, the price of Bitcoin plunged as much as 17%, below $ 50,000, on Thursday morning after Musk’s announcement.
What are the risks?
Wall Street analysts have now warned that Musk’s latest moves are confusing crypto investors and causing additional volatility for Tesla shares.
Amid mounting inflation fears in the stock market, stocks in big tech companies and electric vehicle makers like Tesla have led the recent sell-off. Tesla shares have also come under pressure amid bad news in China, a key market for the electric car maker. On Tuesday, the company halted plans to buy land and expand its Shanghai factory, due to uncertainty surrounding US-China relations, according to Reuters.
The 15% stake drop this week has erased billions from Musk’s net worth, which largely consists of a 21% stake in Tesla. Added to this is a stake in the private space flight company SpaceX.
Nonetheless, as we mentioned earlier, Musk’s wealth remains loose and extensive. Thanks to his huge compensation plan from Tesla, he has received large amounts of money. Even at $ 145.5 billion, Musk is still nearly $ 110 billion richer than he was a year ago.