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Elon Musk Loses Billions As Tesla And SolarCity Share Prices Fall

elon muskElon Musk the founder and single-largest owner of the famed Tesla Motors have had a rough year so far. Musk saw his fortune dwindle mainly owing to the combined losses that his companies, Tesla Motors and SolarCity have faced this year. The two entities together have performed rather poorly causing investors to lose a combined value of $14.8 billion this year and Musk was the biggest loser in this slide, with his fortune declining by around $3.3 billion in combined losses. .

Tesla Motors reported a massive 37 per cent drop in share prices this year, which translated into approximately a massive $12 billion in combined losses for its investors. Musk who has a total stake in the car company of around $4.3 billion, lost around $2.6 billion due to declining share prices.

The share prices of Tesla fell due significantly due to the rising investor concerns, with the company announcing a quarterly loss for the eleventh straight quarter. Although Tesla witnessed high sales from its Model S sedans, it was nowhere sufficient to offset the significant decline in other parts of the business. Investors had earlier predicted that Tesla would bringing in a profit of an adjusted $.12 cents a share, which could have eliminated their fourth quarter losses and expected the revenue for the fourth quarter to rise 65 per cent to $1.8 billion.

However Tesla did not meet any of these analyst predictions and investors reacted disparagingly towards Tesla stocks causing a significant slide. While SolaCity is not as well known as Tesla, the company faced a similar situation as Tesla and contributed to the decline in Musk’s net worth.

SolarCity’s stocks fell last week by a massive 25 per cent to stand at $19.56. The drop occurred once the company informed its investors that it would most likely lose around $2.65 per share during the first quarter of 2016. Market analysts had predicted that SolarCity would lose around $2.46 per share during the first quarter but the negative outlook from the company was sufficient to shake the confidence of its investors. Musk ended up losing $666 million due to the decline in SolarCity shareprices.

While Musk has lost a significant amount of money during the start of 2016, he still has a strong stake with both companies. Musk’s current stake in both companies is valued at around $4.8 billion and does not include his private stake in the SpaceX, a pioneer in space flight travels.

Musk and Tesla are confident that things will turn around quickly due to market demand of their Model X SUV and Model S sedans.