Elon Musk Wealth Plummets by $13 Billion as Tesla Underperforms and SpaceX Rocket Explodes
Elon Musk, the world’s second-richest person, suffered a $13 billion hit to his personal fortune on Thursday as Tesla delivered disappointing earnings and a SpaceX rocket exploded. Bloomberg’s Billionaires Index revealed that Musk’s net worth dropped by $12.6 billion on Thursday, primarily due to the plummeting share prices of Tesla, which lost nearly 10% of its value after its quarterly earnings report was published.
Musk’s fortune, much of which is derived from Tesla shares, has been on an upward trajectory for the past decade, with the company’s shares gaining over 4,000% since their IPO. However, the recent underperformance of Tesla and a series of problems at the company, including slowing sales and Musk’s Twitter acquisitions, has led to a significant decline in his net worth.
Despite remaining one of the wealthiest people on the planet, Musk’s current net worth stands at $164 billion, down from $260 billion a year ago. His wealth decline may not be over yet, as analysts predict a further decline in Tesla’s stock value. One analyst has predicted that Tesla’s stock could plummet to just $28, while another has labeled the company as “one of the most overvalued” on the market and predicted an 80% drop in its stock value.
Congrats @SpaceX team on an exciting test launch of Starship!
Learned a lot for next test launch in a few months. pic.twitter.com/gswdFut1dK
— Elon Musk (@elonmusk) April 20, 2023
While Tesla’s earnings report spooked investors, Musk’s name also appeared in headlines around the world on Thursday when SpaceX’s Starship rocket exploded minutes into its maiden flight. Despite the setback, Musk said he had “learned a lot” from the launch and suggested the next test launch would go ahead within months.
The decline in Musk’s net worth underscores the volatility of the stock market and the unpredictability of business ventures. While Musk remains one of the wealthiest people on the planet, his current financial situation highlights the importance of diversification and risk management, even for those at the top of their game.
