Elon Musk, who was the richest man on the Bloomberg Index, has fallen down to the second spot as $27 billion has been wiped out from his historic gains in the recent past. Till last week he was ahead of Jeff Bezos but now Bezos has reclaimed his top spot. Musk’s worth is still $156.9 billion.
In the past year, Elon Musk’s fortune was rising as high as his SpaceX rockets but recently it has been crash landing just like them on Monday. In 2020 Tesla’s shares soared by an unprecedented 743%. This high increase magnified the value of his personal stake. It also unlocked billions of dollars in options through his historic “moonshot” pay package.
In January, he became the world’s richest person. According to the Bloomberg Index, which lists the world’s 500 richest people, his fortune reached $210 billion. Some of the factors that helped his stocks rise included Joe Biden becoming the President of the United States and his thrust towards clean energy as well as enthusiastic investors. However, the valuation was unsustainable in tech and the fall began. The Nasdaq 100 Index had also been declining for the third time in a row, leading to falls in tech shares.
Another factor that has led to the decline in Musk’s fortunes is perhaps his flip flop on cryptocurrencies. His denigration, appreciation and denigration of the Bitcoin has also led to rises and falls in fortune.
Last month Tesla added $1.5 billion in Bitcoin to its balance sheet after a long period skepticism against the cryptocurrency. Then two weeks he tweeted that the prices of Bitcoin and other “cryptocurrencies “do seem high.” This resulted in a $15 billion hit on his fortune.
During and in the aftermath of the pandemic the market volatility has been extreme. Many billionaires’ fortunes have been playing hide and seek with their owners. Quicken Loans Inc. net worth rose by $25 billion on Monday and now has fallen by $24 billion while Alphabet Inc.’s co-founders Larry Page and Sergey Bring added $13 billion each since January 1.