Tesla boss, Elon Musk, the second richest man on the planet lost $8bn from his net worth this week.
According to Forbes, Elon Musk is currently worth $162.4 billion and is still the richest man. Musk’s net worth is highly intertwined with his shares in his Tesla company.
This week the shares took a hit which led to the $8bn loss. We are going to briefly explain what led to this loss below.
The Germans are here
This week German automobile giants, Volkswagen announced a detailed plan to get involved in the blossoming electric car market. According to the plan, they hope to become the leading electric car manufacturer in the world by 2025.
The announcement drove up Volkswagen company shares by 15%. Experts and analysts strongly believe Volkswagen would be a very competent competitor to Tesla. This led to a 6.9% drop in Tesla shares shaving $8bn from Musk’s net worth.
What you should know
- The automobile industry has been dominated by German companies for a very long time. German automobile companies have at many times in the past set high standards that US carmakers have struggled to compete with.
- The entrance of an 84-year-old German automobile company into the electric car market seems to have set off the alarm bells in the US Market.
- Elon Musk is still the second richest man in the world behind his American counterpart, Jeff Bezos.