A day after the sexual allegations against him surfaced, Elon Musk lost $10 billion. As his fortune was estimated on Thursday, May 19, at $ 212 billion, according to Bloomberg Billionaires Index reports, and after the allegations that became the news of the hour on Thursday evening, his fortune fell in the following reports to Bloomberg to about $ 201 billion only.
According to the Insider’s report, in 2018, SpaceX, a space exploration technology company, paid a flight attendant $250,000 to settle a sexual abuse claim against Elon Musk, which Musk denied in the media.
Musk owns 47% of the shares of SpaceX, whose valuation reached $125 billion last week, and because it is a private company, the value of its shares is not affected overnight.
On the other hand, the performance of Tesla’s stock, which is owned by Musk, represents the main influencing factor in Elon’s revolution, who owns about 15% of the company according to the BBC – BBC, and after the latest news, Tesla’s share price fell by 6.4%.
News of sexual abuse and declining wealth is only a link in the cycle of financial decline that Musk has been going through since the beginning of 2022; According to Bloomberg reports and indicators, since the beginning of the year, Musk has lost $69 billion.
This is partly due to a general decline in the global stock market after the war between Russia and Ukraine, which raised investor concern about the global market. Accordingly, Tesla’s partners express concern about “one-man risk”, which means the fear that the bad reputation of one individual – Elon Musk – affects the company’s overall interests, its image in the global market and the price of its shares.
Wedbush analyst Dan Evans tweeted about the crisis, “It’s hard to ignore the dangers of Musk’s distraction,” noting Musk’s distraction between Tesla and the ongoing crises and his upcoming Twitter takeover.
The price of Tesla’s stock has begun to decline since Elon Musk announced last April his intention to acquire Twitter personally for $44 billion. According to The Insider report, the stock’s drop rate reached 12%, as shareholders questioned how Musk would secure the money.
Just last week, the auto market lost about $110 million of its value, or about a 14% drop. In its report, Bloomberg states that as long as the Twitter deal is still in place, and if Tesla’s share price continues to drop, Musk will still have to sell more shares, and it will be difficult for him to give his full focus to the company.
It is also expected that the decline in Musk’s fortune will continue to be affected by the bad news that is chasing him. On Friday evening, a new documentary film was broadcast looking into the issue of the Tesla robot driver, who is believed to be the cause of many accidents.
In turn, Musk responded through Twitter – without mentioning the report or the documentary – that he is in the process of forming a judicial department in Tesla that specializes in filing lawsuits against rumor mongers without any sympathy, meaning that the war is coming.