Tesla founder and CEO of Twitter, Elon Musk has lost about $10 billion leading to a drop in his net worth.
According to the Forbes billionaire index, on Tuesday, June 27, 2023, the Tesla CEO, Elon Musk lost a whopping $10.1 billion, hence his net worth fell to $224.2 billion.
Bloomberg’s billionaire index data also shows that he lost over $11 billion.
How Elon Musk lost over $10 billion of his net worth
The 51-year-old’s loss represents a 4.30% decline in his net worth. This is because Tesla stocks plummeted by 6.06%.
- A breakdown of the data showed that Tesla which previously closed at $256.60 fell to $241.05 as of the time of reportage according to the United States exchange.
- Before this time, Morgan Stanley and Barclays analysts cut the Elon Musk-run company stock to equal weight, Fox Business reported.
- The prominent global investment bank, Goldman Sachs, has recently downgraded its rating on the electric vehicle (EV) manufacturer.
The bank cited concerns over the company’s profit margins in the near term and the current valuation of its stock, which had experienced significant gains since the beginning of the year. This adjustment in rating reflects the bank’s apprehension about the company’s ability to sustain its impressive performance.
- “We believe the stock now better reflects our positive long-term view of the company’s growth positioning.” Goldman wrote.
- “While the primary reason for the change is that we think the market is now giving the stock more credit for its longer-term opportunities post the recent rally, we’re also cognizant of the difficult environment for new vehicles that we think will continue to weigh on Tesla’s automotive non-GAAP gross margin this year,” the bank added.
Tesla’s Stock Downgraded Again
In recent developments, Goldman further devalued Tesla stocks for the fourth time this month to its current $241.05.
- Despite this downgrade, investors have continued to pull the plug on Tesla. A senior market analyst at Oanda, Edward Maya said to FOX Business that Tesla may have to downgrade to about 10% -15% before investors paddle back.
- Investors pull back from Tesla follows, the automaker’s price cut spree to attract buyers, particularly as more EV competitors rush into the market. Investors fearing that Tesla will further drive price cuts began pulling out their shares.
Earlier on, Elon Musk’s shares declined, briefly putting him in the no 2 spots on the Forbes billionaire index –This was a result of Arnault’s LVMH share increase to €838. In a few hours, Elon Musk made a comeback after Arnault’s LVMH shares dropped to €834.70.
