Elon Musk’s Net Worth Plummets by Nearly $13 Billion in Disastrous 24 Hours
Elon Musk, the billionaire entrepreneur behind Tesla, SpaceX, and Twitter, suffered a disastrous 24 hours on April 21, 2023, as his net worth plummeted by nearly $13 billion. Musk’s woes began with Tesla’s mixed earnings report, which saw the electric vehicle maker’s share price plummet by 10% after reporting a 24% on-year decline in profit to $2.5 billion. Investors were concerned about further margin contraction, especially after the gross auto margin, excluding regulatory credits, fell below the 20% threshold in the first quarter.
Musk’s troubles were compounded by the failure of SpaceX’s Starship spacecraft during its launch attempt. During the test flight, the spacecraft experienced multiple engine failures and began to lose altitude, leading to its intentional detonation. In the history of the Starship program, no spacecraft has gone higher than the one that soared to an apogee of approximately 39 kilometers (24 miles) above the Gulf of Mexico. The Bloomberg Billionaires Index showed that Musk has lost $12.6 billion, accounting for 7% of his fortune, over the past 24 hours after the failure of the Starship spacecraft during its launch attempt and the publication of Tesla’s Q1 financial report.
Furthermore, Twitter launched a controversial overhaul to the social media platform, which saw many users lose their legacy blue checkmarks for choosing not to pay $8 per month for the privilege. In response to the backlash, Musk eventually followed through and rid the site of ‘legacy’ ticks.
Despite remaining one of the richest people on the planet, Musk’s wealth has fallen drastically on the back of his Twitter acquisition and a raft of problems at Tesla, including slowing sales. He was named the wealthiest individual in history by Forbes in late 2021, with a net worth approaching $300 billion. According to Bloomberg’s Billionaires Index, Musk’s net worth was depleted of $12.6 billion on Thursday but still stands at $164 billion.
Much of Musk’s wealth is derived from shares in Tesla, which tanked nearly 10% on Thursday on the back of a disappointing quarterly earnings report. The plummeting share price erased $58 billion from the company’s market cap.
To make matters worse, Musk raised the issue of Tesla’s ability to sell at zero profit and make up for it long-term with the high-margin autonomy software. As a result of the quarterly results, numerous analysts reduced their stock price projections. According to the Bloomberg Billionaires Index, the adverse reaction to Tesla’s earnings report caused Musk’s net worth to fall by $12.6 billion to $164 billion the following day.
Despite his disastrous day, Musk still ranks second in the worldwide rich list, only behind French luxury brand mogul Bernard Arnault. However, the massive loss in his net worth will likely not be felt immediately, as he still has a net worth totaling $164 billion, according to the Bloomberg Billionaire Index.
In conclusion, Elon Musk’s wealth took a massive hit on April 21, 2023, after a series of business blunders. The decline in his net worth was caused by a disappointing quarterly earnings report from Tesla, the failure of SpaceX’s Starship spacecraft during its launch attempt, and the publication of Twitter’s controversial overhaul to the social media platform. Despite the massive loss, Musk remains one of the richest people on the planet, with a net worth of $164 billion.
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