Elon Musk, renowned as the world’s wealthiest individual, experienced a significant financial setback, losing a staggering $18 billion in just one day due to Tesla’s shares plummeting to their lowest point during the close of the market trade.
As of Wednesday, July 19, 2023, Forbes estimated Elon Musk’s net worth to be a towering $256 billion. However, in a sudden turn of events, his fortunes took a hit, and his net worth now stands at $238.4 billion, marking a 7.16% decline.
The decline in his wealth was propelled by Tesla’s shares taking a nosedive of almost 10%, dropping from $291.26 to $262.90 between Wednesday and Thursday.
How Tesla shares fell
Earlier in the week, Tesla’s shares were riding high, bolstered by the company’s rising market valuation. Investors were optimistic, envisioning Tesla as the next big thing, largely driven by the promising prospects of artificial intelligence and the Cybertruck.
However, the situation took a sharp downturn when Tesla revealed its earnings, unveiling positive results.
But Elon Musk and other executives failed to provide precise specifications and delivery dates for the highly anticipated Cybertruck and a rob taxi-ready vehicle.
To add to the dismay, Musk and his team also stated that vehicle production would slow down in Q3 due to factory shutdowns for improvements. This announcement triggered an initial 5% after-hours decline.
The subsequent 9.7% plunge in Tesla’s shares marked the company’s most significant drop in the past three months.
As reported earlier by Nairametrics, the 52-year-old billionaire’s net worth reached $250 billion on Monday. For the second quarter, Tesla reported an operating income of $2.4 billion on sales of $24.9 billion.
While Wall Street had expected an operating profit of $2.7 billion, earnings of 80 cents a share, and sales of $24.2 billion.
Taking a glance back, Tesla’s stock had hit a two-year low back in November, with shares falling to $167.87, which was largely influenced by a drop in stock prices following Musk’s acquisition of Twitter.
Elon Musk’s background
Elon Musk’s current net worth has put his standing at risk once again, as he faces the possibility of losing his title as the richest individual to LVMH chairman, Bernard Arnault.
The gap between Musk and Arnault is currently approximately $3 billion.
Elon Musk’s wealth is primarily derived from his substantial stake in Tesla, accounting for about 60% of his total net worth. Furthermore, a third of his wealth comes from his stake in the private aerospace and communications giant SpaceX, with less than 10% attributed to his ownership of Twitter.
Musk’s financial journey has been nothing short of headline-worthy, with his brief loss of the richest billionaire position to Bernard Arnault a few months ago, only to reclaim his throne with a net worth of $192 billion.
Overall, while Elon Musk remains a prominent figure in the world of business and technology, this recent sharp decline in his net worth underscores the volatility of the market and the profound impact of corporate decisions on individual fortunes.
