NEW DELHI: Tesla founder and CEO Elon Musk’s personal wealth plunged by over $16 billion in just over six hours of trading on Tuesday, according to rich lists maintained by Bloomberg and Forbes, as shares of his company saw the worst tumble.
The money lost by him on Tuesday is more than the entire worth of the Indian stocks like Titan, HDFC Life and UltraTech Cement. Only 21 companies in India are valued more than the wealth Musk lost in a day.
The mercurial technocrat also skidded on the billionaires list. As per Bloomberg Billionaires Index, Musk was sixth richest person in the world and while on Forbes list, he was eighth. At the end of August, Musk had climbed to third position in these lists just after Jeff Bezos and Bill Gates.
Tesla stock plunged 21 per cent in Tuesday’s session, logging its biggest daily percentage drop as the electric carmaker was excluded from a group of companies being added to the S&P 500. Investors had widely expected its inclusion after a blockbuster quarterly earnings report in July.
Up to Friday’s close, the stock had jumped five-fold year to date, taking its market valuation past any other carmaker in the world, even though it manufactures a fraction of the vehicles that Toyota or GM assemble.
Despite the steep fall, Musk has $82.2 billion worth of assets, according to Bloomberg. The founder of SpaceX and The Boring Company has made $54.7 billion this year, less than only Jeff Bezos’ $71.1 billion.
Tuesday rout in US technology stocks affected other entrepreneurs too. Jeff Bezos became poorer by $7.94 billion but kept his top spot on the rich list with assets worth $186 billion. Facebook‘s CEO Mark Zuckerberg lost $4.26 billion, but regained his third spot while Microsoft’s former CEO Steve Ballmer lost $3.89 billion.
Asia’s richest person, Mukesh Ambani owns $80.4 billion worth of assets and is at the seventh position on Bloomberg list, just behind Musk. The seasoned businessman has piled up $21.7 billion in 2020 till now.
Among the biggest billionaire losers this year is Bernard Arnault, Chairman and Chief Executive of luxury goods maker Louis Vuitton, who has become poorer by $19.8 billion this year but is still the fourth richest person on the planet.
Amancio Ortega, founder of clothing chain Zara, is down $17.7 billion; Mexican businessman Carlos Slim and Sheldon Adelson, who derived his wealth from casinos, have lost $15.6 billion and $7.78 billion year to date, respectively.
Fabled value investor Warren Buffett has also been among top losers, as his wealth is down by $6.85 billion. This was even after he recovered a vast amount of his wealth this year largely thanks to a rally in the shares of Apple, which now forms nearly half of his portfolio.