Arab Press

بالشعب و للشعب
Friday, Jun 20, 2025

Bitcoin: Elon Musk loses world's richest title as Tesla falters

Bitcoin: Elon Musk loses world's richest title as Tesla falters

Tesla boss Elon Musk has lost his title as the world's richest person after a recent slide in the electric carmaker's shares, the main driver of his wealth.

Tesla shares have tumbled more than 20% since hitting a high of more than $880 in early January.

They suffered especially steep falls this week, tied to the firm's recent risky $1.5bn (£1bn) investment in Bitcoin.

The drop returned Amazon boss Jeff Bezos to the top spot on the rich list.

The risk of being associated with the notoriously volatile Bitcoin - which has fallen sharply in recent days - may have prompted some Tesla investors to sell their shares, even if the firm has not been hurt by the declines, Wedbush Securities analyst Dan Ives said.

"By Musk and Tesla aggressively embracing Bitcoin... investors are starting to tie Bitcoin and Tesla at the hip," he said.

"The recent 48-hour sell-off in Bitcoin and added volatility has driven some investors to the exits on this name in the near-term."


What is causing the Bitcoin sell-off?


Bitcoin's value jumped nearly 50% in the weeks after Tesla revealed it had purchased $1.5bn of the currency and planned to accept it as payment.

But since climbing above $57,000 on Sunday, the cryptocurrency has dropped nearly 20%. It was trading at less than $48,000 on Tuesday - still higher than when Tesla disclosed its bet.

Just as Mr Musk was credited with helping to fuel Bitcoin's rise, he may also have himself to blame for some of the recent Bitcoin declines.

In an exchange on Twitter over the weekend Mr Musk wrote that the price of Bitcoin did "seem high lol".

Also driving the cryptocurrency lower were comments from US Treasury Secretary Janet Yellen, who sounded a warning on Bitcoin on Monday. She called it an "extremely inefficient way of conducting transactions".

The comments follow a recent surge of interest in Bitcoin, after major US firms such as Mastercard and Bank of NY Mellon followed Tesla's lead in announcing plans to incorporate the digital currency into their operations.

What else is affecting Tesla?


Mr Musk's attention to Bitcoin comes as Tesla faces other challenges.

The firm recently halted most sales of the lowest-priced version of its Model Y SUV, with Mr Musk citing a desire to improve the car's range.

Earlier this month, Chinese regulators summoned the firm over safety and quality issues, after reports of battery fires and abnormal acceleration.

China is Tesla's biggest source of sales after the United States
Rival carmakers such as General Motors and Volkswagen have also stepped up their focus on electric vehicles in recent months.

The struggles follow an astonishing rise in Tesla shares in 2020, when prices leapt from less than $90 to more than $700.

The increase propelled Mr Musk past Amazon boss Jeff Bezos in the world's richest rankings for the first time in January, while also raising questions about whether that value made sense for a firm that produces a fraction of the cars of its rivals.

The two billionaires have been vying for the top spot in the weeks since.

The more than 8% decline in Tesla's share price on Monday was the biggest since September and wiped more than $15bn off Mr Musk's net worth, according to Bloomberg. Shares fell a further 2% on Tuesday.

Mr Musk's tweets have also famously triggered sharp moves in Tesla shares, including last year when the firm lost $14bn in market value after he wrote that its share price was too high.


Meet the meme-loving magnate behind SpaceX and Tesla.


Newsletter

Related Articles

Arab Press
0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Saudi Arabia Faces Uncertainty Over Succession After Mohammed bin Salman
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Majority of French Voters View Macron's Presidency as a Failure
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Businessman Mauled by Lion at Luxury Namibian Lodge
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
×