Must Read
Elon Musk, widely recognized as the world's wealthiest person, faced a significant financial setback as he experienced a jaw-dropping loss of $18 billion in just one day, all thanks to a sharp decline in Tesla's shares during the market close.
As of July 19, 2023, Forbes had estimated Elon Musk's net worth at a towering $256 billion. However, fortunes can change rapidly in the stock market, and a sudden turn of events caused his net worth to plummet to $238.4 billion, marking a substantial 7.16% decline.
According to Nairametric, the primary driver behind this decline was a nearly 10% nosedive in Tesla's shares, which dropped from $291.26 to $262.90 between Wednesday and Thursday.
Earlier in the week, Tesla's shares were soaring, bolstered by the company's increasing market valuation. Investors were optimistic, seeing Tesla as a promising force driven by artificial intelligence and the highly anticipated Cybertruck.
Unfortunately, the situation took a sharp downturn when Tesla revealed its earnings, which turned out to be positive. However, Elon Musk and other executives failed to provide precise specifications and delivery dates for the highly anticipated Cybertruck and the rob taxi-ready vehicle. Additionally, they announced that vehicle production would slow down in Q3 due to factory shutdowns for improvements. These announcements triggered an initial 5% after-hours decline, followed by a subsequent 9.7% plunge in Tesla's shares, marking the company's most significant drop in three months.
It's worth noting that earlier in the week, Elon Musk's net worth had reached an all-time high of $250 billion. For the second quarter, Tesla reported an operating income of $2.4 billion on sales of $24.9 billion, falling short of Wall Street's expectations for an operating profit of $2.7 billion, earnings of 80 cents a share, and sales of $24.2 billion.
This isn't the first time Tesla's stock faced volatility. In the past, it hit a two-year low in November, with shares plummeting to $167.87, influenced in part by a drop in stock prices following Musk's acquisition of Twitter.
As of now, Elon Musk's net worth gap compared to LVMH chairman Bernard Arnault stands at approximately $3 billion. Musk's wealth primarily comes from his significant stake in Tesla, accounting for about 60% of his total net worth. An additional third of his wealth comes from his stake in the private aerospace and communications giant SpaceX, while less than 10% is attributed to his ownership of Twitter.
Elon Musk's financial journey has been nothing short of remarkable, marked by moments of losing and regaining the title of the richest billionaire. Recently, he reclaimed his throne with a net worth of $192 billion after briefly losing it to Bernard Arnault a few months ago.
While Musk remains an influential figure in the business and technology world, this sharp decline in his net worth serves as a reminder of the volatile nature of the market and the significant impact corporate decisions can have on individual fortunes.
