World’s Richest Man, ELON Musk Loses $10billion In A Day Following Alleged Sexual Misconduct
According to the Bloomberg Billionaires Index, Elon was worth about $212 billion on Thursday. According to the index, his wealth dropped to around $201 billion after the allegations were made public on Thursday night.
The world’s richest man, Elon Musk loses $10billion in a day following alleged sexual misconduct against him that has been made known to the public.
The Tesla CEO was worth about $212 billion on Thursday, according to the Bloomberg Billionaires Index. After news of the allegations was made public on Thursday night, his wealth dropped to around $201 billion, the index showed.
According to Insider, Musk’s aerospace company, SpaceX, paid a flight attendant $250,000 to settle a sexual misconduct claim against Musk in 2018. Musk has denied the assertion.
“Those wild accusations are utterly untrue,” he wrote on Twitter.
Musk owns approximately 47 per cent of SpaceX. The company’s valuation was estimated to be $125 billion last week. However, because it is a privately held company, its valuation is stable from day today.
The performance of Tesla’s stock in public markets has the greatest impact on Musk’s wealth. According to the BBC, Musk owns about 15% of the company. Tesla’s stock dropped 6.4 per cent after the allegations were made public.
However, Musk’s sexual misconduct allegations and subsequent financial fallout are just the latest incidents in a long series of incidents since the beginning of the year. According to Bloomberg, he is now more than $69 billion in debt year to date. This is due in part to Tesla’s stock price being dragged down during a global stock-market selloff as investors worried about the health of the global economy.
But it’s also possible that Tesla’s investors were thinking about “key-man risk,” or how the actions of one person can have a negative impact on an entire organization. “The distraction risks for Musk (perception is reality) are difficult to ignore,” Wedbush analyst Dan Ives tweeted on Thursday, referring to Musk’s attention split between Tesla and his upcoming Twitter acquisition.
Tesla’s stock price has continued to fall since Musk announced in April that he would buy Twitter for $44 billion. A day after that announcement, Tesla’s stock dropped more than 12% as investors questioned how he would fund his takeover of Twitter, according to Insider.
According to Bloomberg, the carmaker’s stock fell 14 per cent in a single week, wiping out about $110 billion from its market valuation. “As long as the Twitter deal is out there, and as long as Tesla’s stock is falling,” Gary Black, founder and managing partner at the actively-managed ETF Future Fund LLC, told Bloomberg.
Musk’s fortune is likely to shrink further as Tesla continues to suffer setbacks. “Elon Musk’s Crash Course,” a new documentary, premiered on Friday, looking at Musk’s response to car crashes allegedly caused by the autopilot function in Tesla’s cars not working properly.
On the same day, Musk announced on Twitter, without mentioning the Insider story or the documentary, that he was establishing a “hardcore litigation department” at Tesla that would report directly to him. He was looking for candidates who would not back down from a fight.
“There will be blood,” he tweeted.