Billionaire investor Rakesh Jhunjhunwala has hailed Tesla CEO Elon Musk as a “true pioneer and entrepreneur”, having said that, he wasn’t fairly convinced about his electric automobile company’s valuation. “Elon Musk has not given the market cap of tesla. It is the public who has created it. This market cap is not going to last,” Jhunjhunwala told ET Now lately in an interview. However, he added that it does not take away the entrepreneurial capabilities or overall performance of Musk. “So, the valuation of Tesla is not linked to the capabilities of Musk.” Tesla’s marketplace cap, as of Friday, stood at $648 billion up from about $140 billion in early February 2020 vis-a-vis the $209 billion marketplace cap of Toyota and the $111 billion marketplace cap of Volkswagen.
Tesla shares had wiped out their year-to-date gains on Tuesday. The stock had dropped 13 per cent to $619 in New York — its greatest intraday decline given that September 8 ahead of it pared considerably of the loss to close down 2.2 per cent, Bloomberg reported. The stock was down 31 per cent from January 25 record intraday higher to its lowest point on Tuesday. Importantly, Musk was no longer the world’s richest individual just after Tesla’s shares declined 8.6 per cent on Monday and erased $15.2 billion from his net worth. Currently, Musk’s net worth stood at $174 billion, according to the Bloomberg Billionaires Index. Amazon’s Jeff Bezos was the richest individual in the globe with $181 billion net worth.
Also Read: Mutual Fund Investment: How will a US citizen PIO residing in India be taxed?
Jhunjhunwala, which had backed gaming technologies enterprise Nazara Technologies — amongst a clutch of world wide web startups hunting to go public, stated that he would not like to spend considerably dollars for corporations who have ‘perceived’ massive markets and excellent positioning in that marketplace but no money or really tiny money flows. “So, you are discounting a large part of the future into the present. Like Uber, after its public issue, it never went up. So, personally, I am not a very favoured investor of internet companies. But people have made money so good luck to them.” Apart from Nazara, various startups such as Nazara, Policybazaar, Zomato, Flipkart, Delhivery, MobiKwik, BigBasket, and so forth., are hunting for IPO ahead.