Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
According to data, the 8.55% fall on Monday is the biggest drop of Tesla shares since September 23, 2020, when they lost 10.34%.
Elon Musk, CEO and founder of Tesla Inc (NASDAQ: TSLA) has lost his place as the world’s richest man to Jeff Bezos, the founder and CEO of Amazon.com Inc (NASDAQ: AMZN) after seeing the Tesla shares taking a nosedive on Monday.
According to data, the 8.55% close down on Monday is the biggest drop of the company since September 23, 2020, when it recorded a 10.34% fall. Many believe that the huge drop in the Tesla Inc shares is due to the fear that the Covid-19 pandemic may stage a comeback as some countries are still struggling to contain the virus.
Investment into big tech companies has lost some demands as investors turn to cyclical stocks. The likes of Apple Inc (NASDAQ: AAPL), Amazon, and Microsoft Corporation (NASDAQ: MSFT) recorded a fall of more than 2% each on their stocks. There is another school of thought that links the Tesla Inc shares drop to the sudden fall of the Bitcoin price in the last 24 hours.
The Bitcoin price recorded an all-time high after Elon Musk disclosed that Tesla Inc has invested $1.5 billion in It. This caused a lot of speculations and took the price to a little over $58,000 on February 21, 2021. Unfortunately, Bitcoin has lost over 10% of its value in the last 24 hours, probably causing Tesla investors to sell off their shares amid fears of getting dumped.
The current market pullback has no massive impact on the Tesla profit on Bitcoin as according to Wedbush Securities analyst Daniel Ives, they are on a trajectory to make more profit on the Bitcoin investment than what they made from selling electric cars in the whole of 2020. Tesla Inc has a bigger plan in terms of the utility of Bitcoin and its company. They have disclosed to accept payment in Bitcoin for its cars.
Elon Musk was severely affected by the closedown of the Tesla Inc shares as his net worth plummeted to $183.4 billion after losing $15.2 billion in just a day. Jeff Bezos who also saw his net worth falling by 3.7% on Monday still got $186.73 to his name to reclaim the top spot. The past few hours were not a good one for some of these world’s richest men as almost all of them had their value affected one way or the other.
Behind Musk was the worthiest man in China, Zhong Shanshan who saw his value falling by $5.1 billion after his bottle company fell by 4.5%. Musk took over the first position of the world’s richest man after his Space Exploration Technologies Corp (SpaceX) company recorded a 60% jump from August to value the company at $74 billion. The stocks started the year with a 25% jump. Unfortunately, it has lost a huge portion of its gains in the last 24 hours over a pullback that happened across the cryptocurrency industry and the stock market.