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Elon Musk Loses $16.3 Billion In A Day As Tesla Sees Worst Single Day Fall In Share Price


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.

Elon Musk Loses $16.3 Billion In A Day As Tesla Sees Worst Single Day Fall

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.

Read more about: elon musk tesla
Story first published: Wednesday, September 9, 2020, 11:44 [IST]
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