“As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are *not* guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop,” Mr Musk tweeted.
Mr Musk has also promised not to sell stock — again.
“I won’t sell stock until I don’t know probably two years from now. Definitely not next year under any circumstances and probably not the year thereafter,” Mr Musk said during a Twitter Spaces session on Tesla.
Mr Musk has previously promised to not sell Tesla stock, but went ahead and sold it anyway.
He recently disclosed about $5.3 billion worth of sales, and has sold about $60 billion worth of stock this year.
“I needed to sell some stock to make sure, like, there’s powder dry...to account for a worst-case scenario,” the billionaire explained.
As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are *not* guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop.
Earlier this month, Musk’s year took another turn for the worse and his ego also endured a massive hit when he lost his title as the world’s richest person.
Musk slipped to position two on the global rich list, according to both Forbes and Bloomberg’s Billionaires’ Index, with both publications tracking the world’s most affluent men and women.
Bernard Arnault, the chief executive of the luxury group LVMH, which oversees brands like Louis Vuitton, Dior, Sephora and Tiffany & Co., briefly pushed Musk out of the top spot on December 8.
Since December 14, Arnault has remained in the top slot and Musk has been relegated to the second position among the world’s billionaires.
Musk’s net worth now sits at US$146.5 billion (A$218 billion).
That’s a significant fall from grace since his net worth peaked in January this year.
At the time, the Tesla founder had a net worth that surpassed $US300 billion ($A423 billion), making him the first person in the history of the world to reach that level of wealth. Now his wealth has more than halved in the past 12 months.
Musk’s personal fortune has also taken a hit after taking a US$44 billion (A$65 billion) gamble on social media platform Twitter in a hostile takeover.
So far, it appears that gamble hasn’t paid off as workers quit en masse, Twitter users have quit in droves and key advertisers have pulled out.