On Tuesday, shares of Tesla Inc plunged over 21 percent on NASDAQ after the American electric maker was left out of the S&P 500 index by the committee that decides on new additions to it. The drop was the worst single-day loss in the history of the company and deteriorated its market valuation by roughly $82 billion to $307.7 billion.
Consequentially, Elon Musk, CEO of the company who holds nearly 21 percent stake in it, lost $16.3 billion of his net worth on 8 September, according to the Bloomberg Billionaires Index.
The Bloomberg Billionaires Index is a daily ranking of the world's richest people that is updated at the close of every trading day in New York.
Musk's significant decline in net worth to $82.2 billion pushed him down to become the sixth richest in the world, as of the end of Tuesday.
Thanks to a dramatic increase in the share price of the electric car maker this year, his wealth had soared to make him the third richest with wealth of over $100 billion.
The stock, having risen around 300 percent, caused Tesla to become more valuable than some of the world's largest automakers, including Toyota and Volkswagen.
On Friday, contrary to a general expectation among investors, Tesla was not added to the S&P 500 index after reporting its fourth consecutive quarter of profitability in July. The stock fell 7 percent after market hours on the same day. On Monday, US markets were closed on account of Labour Day.