The U.S. stock market floundered this week–and the sector’s richest person, Elon Musk, is feeling the effects.
Musk’s estimated fortune dropped to $245.1 billion this week, plummeting by about $20.3 billion between the shut of shopping and selling on Friday, December 10 and Friday, December 17 as Tesla’s half tag bounced around and finally ended the week down by 8.3%. Tesla underperformed the broader market. The S&P 500 fell 1.9% this week, while the Dow Jones Industrial Moderate declined 1.7%, thanks in section to a extremely contagious new Covid-19 variant sweeping the nation and ability 2022 passion rate hikes weighing on the minds of investors.
Falling fortune apart, it used to be an eventful week for Musk. On Monday, he earned Time journal’s “Person of the Year” award. Pushback promptly adopted. Senator Elizabeth Warren (D-Mass.), a frequent critic of billionaires, tweeted on Musk’s most modern accolade: “Let’s alternate the rigged tax code so The Person of the Year will if truth be told pay taxes and quit freeloading off every person else.” The unconventional CEO fired relief the next day: “Please don’t name the supervisor on me, Senator Karen,” Musk wrote.
Musk’s Tuesday Twitter tirade integrated an enticing claim–that he would pay extra taxes than any American in historical past this three hundred and sixty five days. Despite the incontrovertible truth that simplest the IRS if truth be told is aware of the reply, Musk will be lawful: He likely owes the federal authorities at the very least $8.3 billion for 2021, Forbes estimated, in step with possibility exercises and his stock sales of almost $13 billion via December 13. (Compared, Amazon founder Jeff Bezos sold $10.2 billion value of shares in his company final three hundred and sixty five days, for a tax invoice as high as $2.4 billion.)
Musk persisted exercising alternatives and selling stock this week. He sold almost 1.9 million Tesla shares to quilt taxes on about 4.3 million stock alternatives he simultaneously exercised this week, continuing a scurry of sales that began in early November. Musk mentioned he would promote 10% of his Tesla stake.
All suggested, Musk’s to find value has fallen precipitously since it jumped above $300 billion in early November, after Hertz announced plans to to find 100,000 autos from Tesla, sending the automaker’s market capitalization above $1 trillion for the first time. That trillion-buck market cap is now in the rearview mediate. In the weeks since, Tesla’s valuation has fallen by about 24%, and Musk’s to find value has dropped by 23%.