Elon Musk has made small investors even smaller - Bloomberg

13 January 2023, 00:43 | Economy
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If the owner of a large company makes a wrong move or publishes a controversial post on Twitter, as Elon Musk often does, famous for losing half of his $ 300 billion fortune in the blink of an eye, small investors lose too, sometimes the last, Bloomberg writes..

68-year-old American retiree Doug Coyle, whose investments in Tesla Inc.. at the peak in November 2021 rose from $100,000 to $3 million, never wanted to sell shares and did not listen to anyone's advice.

But, according to Bloomberg, the collapse followed, and the three-million-dollar bubble was blown away.. Out of the blue, a small investor lost about one and a half million dollars. Nevertheless, Doug is grateful to Elon Musk and for the remaining one and a half.

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Many Tesla investors who have remained loyal to Musk over the years have faced a crash. After a decade of growth that took the company's market value to over $1 trillion and made Musk the world's richest man, stocks plunged 65% last year as rising interest rates hit the tech sector and put an end to stock price appreciation..

Musk's controversial acquisition of Twitter undermines investor confidence.

Tesla's stock price has fallen 37% since Dec. 1 and is now trading at $123, down from over $400 at its peak..

…One small trader started buying shares in the company in 2018. He turned about $3,000 in his account into several hundred thousand and reinvested almost all of $40,000 in Tesla.. Soon $40,000 turned into $800,000 dollars!

But the miracle didn't last long.. Now the value of his stake has dropped to about $300,000.. Trader still believes in Musk, though he says the billionaire tends to 'do stupid things'.

And a 42-year-old man who works for the Department of Veterans Affairs recently sold his house and decided to invest some $210,000 in Tesla.. Since then, the company's shares have fallen in price by about 70%, and the unfortunate investor is considering selling what is left.. "

Elon Musk peaked at $340 billion on November 4, 2021 (according to the Bloomberg Billionaires Index). He remained the richest man in the world until last December he was overtaken by Bernard Arnault (French tycoon, owner of luxury goods manufacturer LVMH).



“Tesla’s market cap in October 2021 surpassed $1 trillion for the first time, joining tech companies like Apple, Microsoft, Amazon and Google’s parent company Alphabet Inc.. Now Tesla's dominance in electric vehicles, the basis of its high valuation, is in jeopardy as competitors catch up.. The company is offering US consumers a rare $7,500 discount on two of its best-selling models through the end of the year, and is also reportedly cutting production at its Shanghai plant..

After a 65% drop in 2022, Tesla shares are not Musk's biggest asset. He sold most of them to buy Twitter.




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