The Chief Executive Officer of Tesla, Elon Musk, has recently left Jeff Bezos behind to become the richest person across the globe, but it looks like his happiness was not for very long. The latest news in the world’s richest ranking suggests that due to the dropping of Tesla’s shares by a massive 8.6 per cent. Musk has been subverted from the title of the richest person on the planet. Now he stands as the second richest person as per the Bloomberg’s Billionaires List. As Elon Musk is now in the second position, the Founder of Amazon, Jeff Bezos has regained his tribe by leading the Billionaires list. The data while drafting this article showed that Bezos has an overall wealth of $ 186 billion while Musk has around $183 billion fortune.
Why did this happen?
The day Elon Musk was dethroned, Tesla witnessed the highest one day-decline in the value of its shares since September last year. This drop is in coherence with a tweet by Musk stating that the price of Ether and Bitcoin (two cryptocurrencies) “do seem high”. Musk is one of the most active business personalities on social media, especially Twitter. Thus, people trace back this tweet to be the main reason for the dropping of Tesla shares.
Interestingly, this tweet by Musk was active 2 weeks after Tesla announced that It itself has invested as much as USD 1.5 billion in Bitcoin, the world’s biggest cryptocurrency. Bitcoin dropped by an astounding 12.5% to reach $48,071 after a period of time when the doubts were highlighted across the globe on the matters related to the durability, reliability, accessibility of the mesmerizing rally of the token. Bitcoin has been facing a lot of criticism for being speculative fiat money. Inorganic money or Fiat money is one that is not dependent on the valuation of precious metals. Instead, the popular conviction that is, a society’s trust, promotes it. The Dollar, the British Pound, the Euro and the Yen are fiat currency, for instance.
Is that all or are there any other aspects to the plunge?
Well, this is not all. There is another mistake that Musk committed due to which Tesla’s valuations saw a decline. Not leaving his notorious reputation for manipulating, engaging, and infuriating investors and the public through his Twitter account, another reason for the plunge lies over social media only. On Twitter, Musk mentioned that the newly arrived Tesla’s Model Y Standard Range SUV didn’t match the standards of the company but, it will still be available “off the menu”.
The newsreaders across the globe are perplexed with what has been happening with the Bloomberg’s Billionaires List this year and the later part of the last year. The CEO of Tesla and the Founder of Amazon have been swapping on 1st and 2nd position of the Bloomberg’s Billionaires List repeatedly more or less because the shares of Tesla have been fluctuating again and again. Earlier this month, Musk overtook Bezos’s position after there was a raise in Musk’s rocket company of $850 million which increased the value of the company to $74 billion.
Is the Crash in Bitcoin’s value because of this tweet by Elon Musk?
After Elon Musk invested in Bitcoin, the price of cryptocurrency reached above $58,000 and the market value of the same increased to more than 1 trillion dollars. Despite, enjoying the gains after purchasing Bitcoin, it has been hinted that Bitcoin is overvalued by the CEO of SpaceX. Since 21st February, the world’s biggest cryptocurrency company is touching the sky. For the first time in history, the Investment of Tesla increased the market value of Bitcoin to $ 1 trillion.
But, why did Elon Musk become interested in this rising “Bitcoin fever”?
After the announcement of Tesla’s investment in Bitcoin, last month, the median price of Bitcoin was about 35,000 dollars but Elon Musk acquired 43,000 bitcoins in January hinting that Bitcoin is ready to be used as the mean of payment for its electric cars.
Some attribute Bitcoin’s deflation to the tweet from Musk, as the temporal proximity between the two occurrences, may provide the feeling of cause and impact. Musk’s announcement, however, arrived two days before the blockchain reached its all-time high. That is, its price continued to increase even after the businessman indicated that BTC could be overvalued.
On the other hand, before this Monday morning, the Bitcoin collapse took place, which does not square with the immediate influence of Elon Musk’s tweets as it comes to electronic currencies. Only by listing it on your social network, it’s enough to recall the moments when the value of the Dogecoin has risen. It would also be very dangerous to assume that the businessman caused the cryptocurrency to decline, but it cannot be ruled out entirely either.
Elon Musk seemed to make another dig at rival Jeff Bezos.
The two tech moguls have lately been flip-flopping for the title of the richest person in the world since then, but they still have a years-long rivalry that started over their conflicting interests in outer space. Musk doesn’t appear to have forgotten.
On Tuesday, Faiz Siddiqui of the Washington Post published a story on how the conditions for Musk’s time – including his travel schedule, personal life, and concentration on SpaceX, his rocket company – influenced Tesla, leading to criticism of his business management.
Repeatedly, both Bezos and The Post have said that he had little impact on editorial decisions. But it hasn’t prevented opponents from putting together the multimillion-dollar technology entrepreneur and the almost 150-year-old newspaper, the most outspoken of which is former President Donald Trump. As President, Trump also attacked Bezos and The Post, tweeting that “fake news” was circulated by the paper and acted as the “chief lobbyist” of Amazon.
Musk is adding heat with this new barb to a feud with Bezos that goes back to at least 2004. Musk has levelled a series of critiques against Bezos and his Blue Origin rocket corporation over the last 15 years. He named Bezos a copycat of some of his business projects, described Amazon as a monopoly, and appeared at Bezos’ age to make some digs.
Bezos, for his part, has consistently opposed SpaceX and the aim of Musk to take humans to Mars – Bezos characterized the proposal as “un-motivating.”