Elon muskElon Musk loses over $7 billion on worries about China
Elon Musk, the world’s richest man and founder of Tesla and SpaceX, lost more than $7 billion to market sell-offs less than 24 hours, which brought his net worth down to $198 billion.
Reports revealed that, market pulled back on Tesla shares, which are among the most profitable in the world, as Chinese economy led to a decline of nearly 4% on Monday.
The international economy could be influenced 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.
As a result of the Evergrande’s Chinese status, many companies working in the region are sending shockwaves with 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, in a facility called Giga Shanghai, where it’s influence has made Tesla 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.