It’s not the first time that Elon Musk’s outspoken personality has cost him. However, this time it has cost him $15 billion.
They say, speak less and hear more. Now we know, why. Probably the biggest setback ever that Elon Musk has faced in his life. Elon Musk is no more the richest man of the world. Like most of the big problems of Elon Musk’s life, this one too saw it’s origin from Tesla CEO’s Twitter handle. It happened after Musk tweeted that the price of Bitcoin and Ethereum “do seem high”. And like every time, investors made sure to respond in the language of stock market — Tesla Inc. was jolted by a drop of 8.6% in the aftermath.
Another factor responsible for the bummer was the tweet by Musk that talked about Model Y Standard Range SUV. He suggested that Tesla’s mentioned model will still be available “off the menu” which strengthened the speculations by Electrek that the model might have been taken off the online configurator.
A Short-Lived Legacy due to Long-Lived Twitter Rants
Tesla hasn’t faced such a huge drop since September 2020 after which Elon Musk’s wealth has only witnessed a speedy upward trend. So much that the trending entrepreneur recorded net worth of a whopping $210 billion at a point in January. Another factor in the skyrocketing net worth of Musk was the $850 million worth investments that SpaceX raised during the beginning of February 2021, adding $74 billion to the its founder’s net worth.
Now that his tweets played against him, Musk lost straight $15 billion in his wealth, coming down to the spot of the second richest man of the world. The current net worth of Elon Musk is $161 billion. This drop has wiped off all the groundbreaking gains that the EV company Tesla made since the beginning of 2021.
Eliminating his Glory on Social Media, is Musk a Terrible Businessman?
The highest bets are placed on the horse that can sustain and win the long race, not the winner of short sprints. Unfortunately, Elon Musk is showing signs of being among the former. We are not saying that Musk isn’t good enough to be where he is today. He is no doubt a revolutionary entrepreneur and innovator with creativity that is writing the future of humanity. However, a good businessman has a farsighted vision and a knack to defy any odds that might tremble his legacy in the future. Twitter rants don’t help in building a legacy like that.
More than doing business, it looks like the Tesla boss is having fun with life and his skills. From starting a company as joke (The Boring Company) to investing in the most unreliable cryptocurrencies on behalf of your business, you name the condemnable practices in the business world, Musk has done it.
The Boring Company: Musk’s Joke that’s become Serious Business
Aiming to send humans on Mars with his one venture to making electric vehicles out for other, implanting chips in human brain with yet another, and digging tunnels with one more venture, can any of Musk’s company rely on him for full attention? He is the man who would rather do everything than do one thing with utmost precision. Like a loose canon, Musk keeps throwing glances of all his action plans on social media making him vulnerable to the setbacks that he himself nurtures. Tesla CEO is no doubt a great innovator, but he is a terrible businessman.
Not the first time investors rethink confidence in Musk
This is not the first time that a Tweet from Elon Musk’s has cost Tesla billions. In May 2020, company’s CEO tweeted that “Tesla stock price too high imo” and investors were quick to respond. The tweet immediately led to a drop in Tesla’s value worth $14 billion. This stunt also costed $3 billion to Elon Musk in his wealth.
A similar incident happened when Musk’s tweet about the future of the NY stock exchange led to the fine of $20 million.