On Thursday, Bloomberg reported that the CEO of Tesla, Elon Musk, saw his net worth plunge by $16.1 billion after Tesla’s stock spiraled by 9.3% due to its poor earnings. Tesla Inc.’s third-quarter earnings weighed on its shares. The stock of Tesla fell since it failed to meet both earnings and sales expectations for the last quarter. This led to a slump in the fortune of its CEO by billions of dollars.
The drop in the value of Musk’s net worth came in after various investors of Tesla reacted after Tesla’s financial results came out on Wednesday. However, Musk still remains the richest person as per Forbes’ measures and perspectives. Currently, his net worth amounts to $209.6 billion. Most of his earnings come from Tesla, as he owns 13% of the electric auto manufacturer.
According to Fortune.com,
“In a conference call following the earnings release Wednesday, Musk repeatedly mentioned the toll of high-interest rates on consumer confidence. The electric-vehicle juggernaut reported its first quarterly fall in sales this year, delivering 435,059 vehicles, while margins fell to the lowest in over four years after the company repeatedly cut prices for its cars.”
However, Musk saw an increase in his wealth in 2023 by $70 billion, in addition to a rebound of Tesla shares, even though the fundamentals were deteriorating. Although LVMH’s Bernard Arnault overtook Tesla, Elon Musk still became the world’s wealthiest person by a large margin.
Tesla still seems optimistic as it maintains that it will get 1.8 million customers for its vehicles by the end of the year. Despite its struggles, Tesla still remains the most valuable manufacturer of vehicles in the world. It also promised that it would deliver the long-awaited Cybertruck by November, which is two years behind schedule.