Elon Musk’s accusation of sexual harassment received wide coverage. Allegedly, during a massage to a SpaceX flight attendant, Musk removed the sheet covering the lower half of his body and showed him his genitals. In case he “does more”, he offered to buy a horse for the rider.
SpaceX, the aerospace firm founded by Musk, allegedly paid the flight attendant $250,000 to settle the sexual harassment claim in 2018. Musk denied the claim.
BILLION DOLLARS LOST IN ONE DAY!
Tesla CEO Elon Musk lost $10 billion in just a single day as sexual harassment allegations against him surfaced. According to the Bloomberg Billionaires Index, the famous billionaire’s fortune was $212 billion last Thursday, compared to just $201 billion the next day.
Musk owns about 47% of SpaceX, which allegedly paid the flight attendant $250,000. Last week, the company was estimated to reach a valuation of $125 billion. But it is a private company and therefore its valuation does not change much from day to day.
The thing that has the most significant impact on Musk’s wealth is Tesla’s stock performance in the public markets. Musk owns about 15% of the electric car maker, according to the BBC.
ELON MUSK’S WEALTH IS FINISHING FOR A LONG TIME
But the news of Musk’s alleged sexual misconduct and the resulting financial collapse were hailed as the latest in a prolonged wealth decline since the beginning of this year.
According to Bloomberg’s estimate, Musk has more than $69 billion in poverty since the beginning of the year. This is partly because Tesla’s stock price was pulled down in a global stock market sell-off as investors worry about the health of the global economy.
But it’s also likely that Tesla’s investors are considering “key man risk,” or how losses suffered by one person could negatively impact the entire organization. “It’s hard for Musk to ignore the risks of distraction,” said Wedbush analyst Dan Ives, citing Musk’s divided attention to Tesla and his upcoming Twitter acquisition.
At the same time, the decline in Tesla’s stock price has accelerated since Musk announced in April that he would take Twitter private for $44 billion. A day after that announcement, Tesla’s shares fell more than 12 percent as shareholders wondered how it would finance its takeover of Twitter, Insider reported.
“PEOPLE ARE CONCERNING”
In the past week alone, the automaker’s stock has dropped 14 percent, wiping nearly $110 billion from market capitalization, Bloomberg reported. Gary Black, founder and managing partner of ETF Future Fund LLC, said: “As long as the Twitter deal is in place and Tesla’s shares are down, people are concerned that Musk will have to sell more shares and be distracted, thus not paying enough attention to Tesla. does,” he said.
On the other hand, experts say that as the negative news about Tesla continues, Musk will see his wealth shrink even more. A new documentary, “Elon Musk’s Crash Course,” was released in the US last Friday, examining Musk’s response to car crashes that allegedly resulted from the autopilot function in Tesla’s cars not working properly.
The same day, Musk announced on Twitter that he had set up a “hardcore litigation department” at Tesla that would report directly to him, and shared an interesting tweet saying, “There will be blood.”