Tesla Stock Plummets 12% as Elon Musk Loses $50bn in Two Days
Tesla stock plummets 12% Tuesday and wipes out $200bn from its market cap this week. Elon Musk loses $50bn in just two days.
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- Tesla stock plummets 12% on Tuesday and erases $200 billion since Monday
- Elon Musk loses $50bn in two days after his Twitter poll said he should sell 10% of his TSLA stake
Tesla Stock Drops 12% Erasing Over $150 Billion
Electric-car company Tesla reversed its spectacular gains on Tuesday as the share price plummeted by 12%. More specifically, Tesla stock was knocked after Elon Musk’s Twitter poll said he should sell 10% of his holdings in the company.
That said, during the regular session yesterday, Tesla lost about $150bn in value, while Elon Musk’s wealth shrank by $35bn. Furthermore, coupled with the stock market action from Monday, Tesla has seen $200 billion wiped out from its market capitalization.
Presently, Tesla is on the brink of falling out of the $1 trillion club as its value hovers right at the $1 trillion mark.
Seemingly, the stock is about to open in the green as pre-market trading shows a gain of 1.8% ahead of Wednesday’s session.
Still, over the past two days, Tesla has declined by about 17%. The drop cost its billionaire chief executive Elon Musk as much as $50 billion. As a result, Elon Musk´s net worth is now down from $338bn to $288bn, according to the Bloomberg Billionaires Index.
Kimbal Musk Cashes Out $110 Million Before Tesla Price Gets Knocked
In other Tesla-related news, Elon Musk’s brother, Kimbal Musk, sold roughly 90,000 Tesla shares on Friday. In other words, right before Elon Musk released his Twitter poll which knocked Tesla’s price, Kimbal Musk netted about $110 million.
That became clear in a filing with the Securities and Exchange Commission. According to the document, Kimbal Musk has realized a profit of $108.9 million from the selling of 88,500 shares. He continues to hold 511,000 shares in the EV maker, worth a little under $600 million.
As to Elon Musk, presently, he owns about 170 million shares of Tesla. With this in mind, a 17-million share block should be offloaded if he intends to build on his promise. If he would decide to sell all of it in a single day, the order could pressure the price significantly. He could, however, choose to sell over several days, and limit the effect on Tesla’s share price.
What to Watch in the Markets?
Besides the volatile price of Tesla today, market participants will be watching for the latest US inflation report. As the broader financial markets are gearing up for the US session, consumer price data for October will be revealed. The report is expected to create elevated volatility among currencies and commodities.
Meanwhile, bitcoin and cryptocurrency trading are taking a breather early Wednesday. Leading tokens are hovering near all-time high levels set this week. The original cryptocurrency, for example, is currently changing hands at $66,500 per coin.
Economic Data Coming Up Today (EST times)
The US consumer price index report is scheduled for 08:30 am. At the same time, US jobless claims will be released for the previous week. Later, at 07:30 pm, Australia will announce its employment change for October. To this end, increased fluctuations could be expected in the Australian dollar and the wider forex markets.
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