It seems that not a day goes by when Elon Musk is not in the media. Usually, it’s about issues related to how he expresses himself or runs his company. However, the problem is more serious in this case as it revolves around an alleged sexual misconduct lawsuit. The rumors result in a drop in the value of the billionaire’s fortune.
There is no denying that there is a direct correlation between the drop in the share value of Musk’s companies, primarily Tesla, due to the moves around the purchase of Twitter. However, news related to Elon Musk’s alleged sexual misconduct towards a SpaceX flight attendant may also have played a role.
Why do we talk about demand?
In recent weeks, several media outlets have published reports claiming that SpaceX management had paid slightly more than $300,000 to try to stop a sexual harassment lawsuit by Elon Musk against a female flight attendant at the company.
Although the billionaire himself has denied this fact, everything surrounding him is always magnified and automatically becomes a trend. Obviously, this is true for the positive, but also for the negative.
Regardless of what finally happens with this information, which the founder of Tesla will legally contest, the fact is that in recent weeks there has been a drop in the estimated value of the fortune that this entrepreneur accumulated.
Why has the value of Elon Musk’s fortune fallen?
We probably cannot establish a single cause. However, some important issues mark this drop in value.
To give us an idea, in just one day (last Thursday, 19 May), it was considered that it could have lost a value of more than 10 billion dollars. We recall that Musk’s estimated fortune is around 210,000 million.
If we review the evolution of Tesla’s shares, we can better understand what is happening. Although these shares have subsequently recovered slightly, the truth is that the company’s assets have been on a downward trend. Last week alone, the accumulated losses were more than 14%.
These losses will mean a decline in market capitalization of over 100 billion dollars.
If we consider that Musk’s fortune is largely linked to the value of Tesla, we can understand how this type of decline affects the billionaire’s wealth.
Why isn’t SpaceX’s value so affected? The answer is simple: this company, like Musk’s other companies, is not listed. The fact that they are not listed means that their estimated value is not subject to market fluctuations or, at least directly, to unforeseen events around their founder.
However, this does not mean that there will not be a decline in the estimated value. Although it may be slower, this may also occur in the medium term.