Elon Musk, the world’s richest man and founder of Tesla and SpaceX, lost more than $7 billion to market sell-offs over the course of less than 24 hours, bringing his net worth to $198 billion.
The market pulled back on Tesla shares, which are among the most valuable in the world, as Chinese economic concerns led to a drop of nearly 4% on Monday.
The global economy could be affected if Chinese property developer, Evergrande defaults on its $300 billion in debts. Several stocks were down on Monday, including electric vehicle stocks, which have performed well over the past few years.
Due to Evergrande’s Chinese status, many companies working in the region are sending shockwaves with the massive default. A good example of this is Tesla. The electric automaker has been manufacturing its Model 3 and Model Y in China since early 2020, at a facility called Giga Shanghai.
Since its introduction to the market, Tesla has continued to be one of China’s leading electric-car manufacturers, and a number of plant facilities have transitioned into a sort of export centre. Giga Berlin, Tesla’s new factory in Berlin, has just begun construction as the company shipped Model 3 and Model Y vehicles from China to Europe.