TESLA CEO ELON MUSK'S FORTUNE FALLS BY $8.9 BILLION

In a report released by JPMorgan analyst Ryan Brinkman, he warned Tesla investors not to add Tesla stock to their portfolios before it is added to the S&P 500 Index on December 21. He stated that Tesla shares are "not only overvalued but dramatically so," maintaining his longtime bearish stance on the electric-vehicle maker.

As he released the report, Tesla shares were down by nearly 7%, lowering Musk’s net worth to $135.8 billion. This pushed Musk back to the number three spot on Forbes’ ranking of the world’s richest people.

Only a day earlier, Tesla’s stock rose following news of a $5 billion capital raise. Musk briefly overtook LVMH chairman, Bernard Arnault, to become the world’s second-richest person, however, Arnault has now regained that title and added $1 billion to his fortune, which now stands at $145.6 billion.

Although analyst Brinkman raised his price target on Tesla from $80 to $90 due to the company’s latest capital raise, it is still reported to be the lowest price targets on Wall Street. Brinkman continued his report where he notes that in the two years since December 2018, expectations for Tesla’s earnings through 2024 have dropped, even though Tesla shares have risen more than 800%. "Tesla’s multiple of earnings is very high in nominal terms for any company in any industry at any time in history," the JPMorgan analysts concluded.

The electric carmaker’s stock has been surging and rising by nearly 50% ever since news broke that the company will be added to the S&P 500 Index on December 21.

Even though Tesla is the lowest price targets on Wall Street, the company still remains one of the most controversial stocks on Wall Street. According to Bloomberg data, analysts evenly split: 36% recommend it as a "buy,", 31% give it a "hold" rating and 33% a "sell" rating.

Tesla stock is still up more than 600% in 2020 thus far, even though shares fell on Wednesday and retreated from record highs.

CEO and Founder, Elon Musk, had moved his primary residence from California to Texas, which means that now the three richest people in the U.S. – Musk, Amazon CEO, Jeff Bezos, and Microsoft co-founder, Bill Gates, all live there.