Elon Musk suffered a significant loss in personal fortune amounting to almost $13 billion within 24 hours. The loss came as a result of the explosion of SpaceX’s Starship rocket mid-flight and disappointing earnings report by Tesla.
Bloomberg’s Billionaires Index, which tracks the real-time wealth of the world’s richest people, showed that Musk’s net worth was down by $12.6 billion on the said day.
The majority of Musk’s wealth is derived from his Tesla shares, which decreased by almost 10% following a disappointing quarterly report that erased $58 billion from the company’s market cap. In the report, the company recorded a year-on-year decline of 24% in net income for the first three months of 2023.
The decrease in Tesla’s shares spooked investors, and Musk’s announcement that the company would continue with its price cutting spree to boost demand for its vehicles didn’t help.
Despite remaining as one of the richest individuals in the world, Musk’s wealth has taken a significant hit following his Twitter acquisition and the problems at Tesla, such as slowing sales.
Musk’s current net worth is estimated at $164 billion, down from $260 billion a year ago. However, Musk remains the second-wealthiest person globally, although the gap between him and first-place Bernard Arnault has continued to widen.
Analysts’ outlooks for Tesla suggest that Musk’s net worth could be set for another significant blow as the firm’s shares may nosedive to just $28.
