Elon Musk Falls To Second Richest In The World After Wealth Drops By Nearly $14bn In One Day

Elon Musk falls to second richest person

 

Elon Musk falls to second richest person globally after he lost nearly $14 Billion in one day.

After his fortune fell by nearly $14 billion in one day, in a brief tenure as the wealthiest person on the planet, Tesla billionaire Elon Musk is back to the second-richest person in the world.

Shares of his electric car maker, Tesla, plummeted by nearly 8 percent on Monday, taking Musk’s net worth down by $13.5 billion to $176.2 billion.

Musk has again sunk to second place, according to Forbes’ figures, despite momentarily overtaking Amazon CEO Jeff Bezos as the world’s richest individual last Friday.

Read also: Elon Musk Set To Overtake Mark Zuckerberg As Third-Richest Person

Bezos, with net worth of $182.1bn, was only $6 billion behind him. Amazon’s shares dropped by more than 2% on Monday, which slashes Bezos’ net worth by $3.6bn.

Musk earned multiple tranches of options worth billions of dollars each over the course of 2020 as Tesla reached separate market capitalization and EBITDA thresholds.

Tesla’s board of directors certifies the award of each tranche, which then releases a statement to the Stock and Exchange Commission in a legal report.

Musk happens to be eligible for another 8.44 million options, worth around $6.25 billion at the trading price on Monday, but Forbes has not yet allocated these options to Musk, because the board has not formally certified them. (Bloomberg appears to count Musk’s most recent tranche of options in its net worth figures for Musk.)

Fueled by the skyrocketing Tesla share price, after March 2020, when it was worth $24.6 billion, Musk’s wealth has risen by about $150 billion.

In 2020, Tesla’s stock rose more than 720 percent, and in the first week of 2021 it had already added another 12 percent. Tesla joined the S&P 500 Index in late December 2020, a move that also took the market higher.

In 2020, Tesla was the world’s most valuable automaker, manufacturing half a million vehicles, a fraction of the production at multinational giants such as GM and Toyota.

He is already about $20 billion richer than the third richest person in the world, French luxury tycoon Bernard Arnault, despite Musk’s decline on Monday (worth $154.6 billion today).

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