During 2020, Elon Musk set records by having one of the fastest streaks of wealth accumulation in history. However, 2021 has not been so positive for the character or for his company, Tesla.
Elon Musk’s fortune fades
Yesterday, Tesla shares closed below $ 600 for the first time since December 4. In fact, since the beginning of the year, the stock price has fallen 15%, according to CNBC.
In this way, Elon Musk lost $ 27 billion since Monday, according to Bloomberg. However, despite the loss, his net worth still ranks him as the second richest person in the world according to the Bloomberg Index.
Musk’s recoil is particularly curious because of the speed with which he climbed to the top. It is worth noting that during 2020 Tesla shares increased by 743%.
In fact, the Tesla price hike was precisely what caused Musk in January to strip Jeff Bezos from the position of the richest person in the world.
So what happened? What is slowing Tesla shares down? Will Bitcoin have something to do with it?
How is the electric car market doing?
According to CNBC, there are several factors that have been hurting the company’s stock price.
Just this week the president of the FED assured that inflation could reach the United States and, with it, bond yields are increasing. Therefore, this situation is generating downward pressure for technology stocks.
On the other hand, Tesla investors have begun to notice that it is not alone in the market. In fact, according to CNBC, investors like Ron Baro have sold their shares in Tesla and invested in their competitors.
And, another element that has been affecting the market in general, is the shortage of semiconductors. This has forced multiple manufacturers to temporarily close some production plants.
Bitcoin, did it destroy Elon Musk’s fortune?
Last month Elon Musk revealed that Tesla would have invested $ 1.5 billion in Bitcoin. Obviously, this investment generated much controversy and several investors shared their disappointment.
However, everything got complicated after Elon Musk commented on Twitter that the prices of Ethereum and Bitcoin seemed to be very high. According to Bloomberg, Musk’s fortune took a $ 15 billion hit following the Bitcoin price crash.