Tesla Inc shares fell for another session in a row on Wednesday. For a while, the company’s valuation plunged to the point where the electric car maker left the ranks of over a trillion dollars. These are the consequences of the unusual communication of the head of the company – Elon Musk, who in a Twitter poll asked what he should do with 10 percent of his shares.
The stocks fell 3.5% to $ 987.31 at the start of today’s session in volatile early trading, briefly pushing their market value below $ 1 trillion.
Tesla is losing on the New York Stock Exchange
The company lost nearly $ 200 billion since Monday after Musk’s poll, more than General Motors and Ford Motor’s market capitalization.
The world’s most valuable carmaker entered an elite trillion-dollar club last month after winning its largest-ever 100,000 Tesla car rental order from Hertz. The sell-off was triggered by a weekend poll by Musk who asked his Twitter followers if he should sell 10% of his stake in Tesla. Almost 58% of them supported the sale. Investors are closely monitoring Tesla’s submissions with the US Securities and Exchange Commission (SEC) for any guidance on share sale plans. The SEC rules give companies four business days to report major events.
Sale of Tesla shares by Musk’s relatives
Four former and current Tesla board members, including Musk’s brother Kimbal Musk, applied to sell nearly $ 1 billion shares at the end of last month, according to data and market data. Despite the sell-off, stocks continued to rise nearly 45% over the year after hitting a series of record highs that catapulted the company into a trillion-dollar club.
This is a record two-day decline in the history of the Bloomberg Billionaires Index and the largest one-day – after Jeff Bezos, whose fortune fell by $ 36 billion following his divorce from MacKenzie Scott in 2019.
Elon Musk’s net worth decreased by $ 50 billion in 2 days
For Tesla’s stock, the last few days have been quite turbulent. It started when Musk asked on Twitter over the weekend if he should sell 10% of his business. their shares in the company. Then it was reported that his brother Kimbal had sold the shares just before the poll, in which over 3.5 million people voted and a majority (57.9%) in favor of selling the shares.
Tesla shares fell by about 12 percent. after completing the survey in which Musk asked about the sale of 10 percent. of its shares, Reuters reported.
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