After the stock price of Tesla plummeted for the second day in a row, Elon Musk lost $50 billion.
It all started with a Twitter poll. The Tesla CEO conducted a poll on Twitter in which asked the Twitterverse whether he should sell 10% of his holdings to pay taxes.
The majority of the voters wanted the SpaceX CEO to sell his holdings. Musk also said that he would “abide” by the results of the poll.
Elon Musk Loses $50 Billion
The Dogefather lost $50 billion in two days. This was the biggest one-day and two-day decline in the history of the Bloomberg Billionaires Index.
An insider report from investor Michael Burry stated that Elon Musk is not selling Tesla shares to solve world hunger or pay tax, but to cover his personal debt.
The Tesla CEO has pledged about 88 million shares, or 36% of his total stake, as collateral for personal loans as of June 30.
However, Musk had 41% of his shares pledged as collateral for his debts at the end of December, and 48% as of June 30 last year.
Moreover, recently, many investors have liquidated their Tesla shares. From late September to early October, Cathie Wood sold 381,000 shares. On Friday, she sold another 80,354 shares of Tesla.
On November 5, Kimbal Musk disclosed in a filing that he sold 88,500 Tesla shares. Also, reports have said that the stock of Tesla is overbought.
Thus, the stock being overbought, the recent selling of a myriad of Tesla shares, and the report by Micheal Burry, is the reason for the massive drop in Tesla stock price.