Jakarta, CNBC Indonesia – Tesla founder and CEO, Elon Musk is still the richest person in the world according to Forbes. His total wealth reaches US $ 218 billion. However, in the past month Elon Musk’s wealth has decreased by US$49 billion or equivalent to Rp. 715 trillion (assuming Rp. 14,600/US$).
The decline in Elon Musk’s wealth was due to the fall in Tesla’s share price after he announced the purchase of Twitter shares as much as 10%. Then he announced plans to annex 100% of Twitter shares worth US $ 44 billion.
Fortune noted that since the announcement until the end of last Friday, Tesla’s share price had fallen 28%. This saw Tesla’s market capitalization plummet from $1 trillion in October 2021 to $735 billion last week.
The sell-off of Tesla shares that made Elon Musk’s fortune down is suspected to be due to investor concerns where Elon Musk’s money will come from to fund the acquisition.
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Foto: Tesla (REUTERS/Lucas Jackson) Tesla (REUTERS/Lucas Jackson)- – |
Investors assumed that Elon Musk would sell some of Tesla’s shares to fund the corporate action, before Elon Musk did that, investors took the step of selling Tesla’s shares. This step was taken by Elon Musk. He sold Tesla shares and raised US$8.5 billion, Fortune reported, quoted Monday (23/5/2022).
Another factor in the decline in Tesla’s share price was Tesla’s exclusion from the S&P ESG sustainability index starting last Wednesday. It is an index that shows the company’s role in environmental and social corporate governance.
Tesla’s exclusion from the S&P ESG sustainability index was allegedly due to cases of racial discrimination and poor working conditions at Tesla’s California factory, United States (US).
This negative sentiment made Tesla’s share price fell 6% on Wednesday last week. Elon Musk’s net worth is down $12.3 billion. Currently, Elon Musk is known to control 17% of Tesla shares.
On the decision to remove Tesla from the S&P ESG sustainability index, Elon Musk wrote his disappointment on his personal twitter account. “ESG is a scam”. He also added that S&P had “lost their credibility”.
But Elon Musk isn’t the only world’s richest person to lose his fortune this year. The biggest loss was recorded by Binance CEO Changpeng Zhao, who lost $81 billion in wealth since the start of the year. Next up is Jeff Bezos, founder of Amazon, who lost $62 billion this year.
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