Elon Musk's net worth dropped to a new low after he lost nearly $13 billion in the past 24 hours, the biggest fall in his net worth this year. Not one, not two, but three reasons, including a slipping stock market, caused the billionaire to lose nearly $13 billion in a single day.
There is no doubt that Musk is feeling disappointed about the first-quarter results of his electric-car maker Tesla, which sent Tesla's shares down 9.75% on Thursday to $162.99 on NASDAQ. However, it is worth mentioning that Tesla shares are still up more than 50% in the last year despite this fall.
It has been reported by CNBC that Tesla has posted nearly a 20% decline in revenue, net income, and earnings per share over the corresponding quarter a year ago. The Tesla CEO has also stated that the company would prefer to have higher volumes over higher margins, a suggestion that has sparked some anxiety from analysts.
As Trade Algo reported, a second factor was the explosion of an experimental SpaceX Starship rocket that had managed to successfully launch in Boca Chica, Texas. The rocket exploded over the Gulf of Mexico about four minutes after it was launched, creating a fiery ball of flame.
Thirdly, and last but not least, because Musk promised weeks ago that he would start charging people $8 per month for the privilege of having their blue checkmarks removed, the last few days have been turbulent for Musk due to the fact that many people on Twitter have already lost their blue checkmarks for this reason.
There are over 135 million followers on Twitter for Elon Musk.
This year's biggest decline
Tesla's rapid fall in its share price yesterday has had immediate impacts on Elon Musk's net worth. According to Trade Algo, the EV's CEO saw his wealth drop $14 billion as a result, which is the most significant downside growth for him this year. He now stands at $32.3 billion in wealth.
A report claims that Elon Musk's fortune is primarily comprised of his Tesla stake, including shares and options, although SpaceX's valuation has grown more significant over time.
When asked about the level of profitability Elon Musk would be comfortable with at Tesla, Musk admitted, “It’s difficult to say what the margin will be.” As far as SpaceX is concerned, Musk expressed his optimism about the program and the upcoming test launch and congratulated his employees.
A tweet he replied to about 420 Day on Twitter was among the things Musk said about his celebration of the day. It was projected to be a monumental day, Musk wrote. He chose to tweet, "Such a great day in so many ways today!". Musk tweets about it every morning.
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