Despite a decline in Tesla’s revenue, Elon Musk, the former world’s richest man, saw his net worth increase by $9.8 billion in just one day, bringing it to $187.7 billion.
This data was tracked by Nairametrics on Forbes Real-Time Billionaire Index on Wednesday evening.
Tesla reported disappointing results, missing estimates on both the top and bottom lines. Revenue experienced a 9% year-over-year decline, the most significant drop since 2012.
Auto sales also fell by 13% compared to the same period in 2023. Additionally, free cash flow turned negative.
For example, revenue decreased from $23.33 billion a year earlier and from $25.17 billion in the fourth quarter. Net income plummeted by 55% to $1.13 billion, or 34 cents a share, from $2.51 billion, or 73 cents a share, in the previous year.
Despite these challenges, Tesla shares surged by 13% in extended trading on Tuesday after the earnings report. Some of the optimism stemmed from Tesla’s announcement of plans to commence production of new affordable electric vehicle models in “early 2025, if not late this year.”
As Musk owns 13% of Tesla, significant fluctuations in share price on the trading markets can result in substantial increases or losses in his net worth.
What you should know
Before the 13% surge in after-hours trading, Tesla shares had experienced a decline of more than 40% throughout the year, hitting their lowest point since January 2023.
Concerns regarding weak deliveries, competition in China, and the company’s ongoing price reductions contributed to this downward trend. Earlier in the month, Tesla reported an 8.5% year-over-year drop in vehicle deliveries for the first quarter.
In response to these challenges, the company announced plans to expedite the launch of new vehicles, including more affordable models.
These new models are expected to share manufacturing lines with Tesla’s existing lineup, allowing for efficient production.
Tesla aims to maximize its current production capacity and achieve over 50% growth compared to 2023 production levels before considering investments in new manufacturing lines.
