Tesla CEO Elon Musk lost the most money in the world during the session on December 27, due to the sharp decline in shares of the American electric vehicle manufacturer.
At the close of trading on December 27, shares of electric vehicle manufacturer Tesla (USA) fell 5%. This caused CEO Elon Musk's wealth to evaporate by $16.1 billion, dropping to $452 billion in just one day.
This is also the largest drop in wealth in the world yesterday, according to the Bloomberg Billionaires Index. The second largest drop in wealth was experienced by Oracle software founder Larry Ellison, with $3.3 billion. On December 27, shares of tech giants were sold off, causing the 7 billionaires who lost the most money in the world to all belong to this sector.
Tech stocks were sold due to rising U.S. government bond yields. Yesterday, the yield on 10-year bonds approached a 7-month high.
"Borrowing costs will be higher whenever yields rise. This has been going on for a month now. Investors may be reassessing their bets on the tech giants in this context," said Michael Reynolds, Director of Investment Strategy at Glenmede to Reuters.
Despite a significant drop in wealth, Elon Musk is still the richest person in the world. Following him are Amazon founder Jeff Bezos ($243 billion) and Meta owner Mark Zuckerberg ($212 billion).
Musk has a diverse asset base. According to Forbes, he currently holds 12% of shares in Tesla and 42% of shares in aerospace company SpaceX. The billionaire also owns over 70% of social media platform X and about 60% of xAI - the artificial intelligence startup he founded.
Overall, since the beginning of the year, Musk has been the person with the largest increase in wealth in the world, with $223 billion. His wealth surged from the end of October when he actively supported incoming U.S. President Donald Trump in the election campaign. Tesla shares were bought as investors expected the American electric car maker to benefit during Trump's term, due to their close relationship.
Since the election, Musk's wealth has increased by about $200 billion. He has also benefited in part from SpaceX's valuation being pushed up to $350 billion.
(according to Reuters, Forbes)
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