Elon Musk’s net worth took a hit of $24 billion as Tesla’s stocks plummeted by 9%. Despite this, he remains the world’s richest individual, with a net worth of $231 billion.
The drop in Tesla’s share price can be attributed to the company’s disappointing Q3 performance, as per data from the Forbes billionaire index. Tesla’s shares dropped 9.3% from $245 on Wednesday to $220 by Thursday evening.
In this quarter, Tesla’s net income was reported at $1.85 billion, marking a 44% decline compared to the same period in the previous year.
Musk’s ownership stake in Tesla stands at approximately 21%, making up a significant 68% of his wealth. During Q3, Tesla managed to achieve a 9% year-over-year growth in total revenue, reaching $23.4 billion.
However, this figure was down from the previous quarter (Q2) when the company reported revenue of about $21.3 billion.
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The company’s earnings also saw a decrease, dropping from 91% in Q2 to 66% in Q3. These results fell short of investor expectations, with FactSet predicting $24.2 billion in revenue and 72 cents per share in earnings.
Tesla did report the sale of 435,059 vehicles in the July-September period, indicating a 27% increase from the previous year.
Nonetheless, this fell short of the 461,000 vehicle sales that analysts had forecasted, according to FactSet Research.
Analysts attribute much of the stock price decline to Musk’s recent statements during an earnings call. Musk expressed concerns about the broader global economy, noting that “interest costs in the U.S. have risen substantially” and describing the current market as a “challenging economic environment.”
He also mentioned the need for the company to lower prices and manage early expectations for the upcoming Cybertruck product.
Regardless, Musk retains his title as the world’s wealthiest person, and Tesla maintains its position as the eighth-largest company in the world by market capitalization worth $695.7 billion, according to Motley Fool.
