Elon Musk’s Fortune Plummets by $13 Billion After SpaceX Rocket Explosion and Tesla Earnings Disappointment
Elon Musk’s personal fortune took a hit of almost $13 billion on Thursday as the world watched a SpaceX rocket explode while Tesla delivered underwhelming earnings.
According to Bloomberg’s Billionaires Index, Musk’s net worth was depleted by $12.6 billion on Thursday. Much of Musk’s wealth is tied to shares in Tesla, which plummeted nearly 10% following a disappointing quarterly earnings report. The drop in share price erased $58 billion from the company’s market cap.
Tesla reported a net income of $2.51 billion for the first three months of 2023, marking a 24% decline from the previous year. Musk, Tesla’s CEO, suggested that the company would continue its price cutting spree to boost demand for its vehicles, despite the impact on margins.
On Friday, Tesla hiked U.S. prices after implementing six price cuts earlier in the year.
In addition to the financial woes at Tesla, Musk’s name made headlines when SpaceX’s Starship rocket exploded minutes into its maiden flight. Musk stated that he had “learned a lot” from the launch and plans to proceed with the next test launch within months.
Despite Musk’s previous status as the richest person in history with a fortune nearing $300 billion, his current net worth stands at $164 billion, down from $260 billion a year ago. He remains the second-wealthiest person globally, trailing behind Bernard Arnault, founder of LVMH.
Tesla stock has lost around 52% of its value over the past 12 months, but has seen a 50% increase since January. Analysts have lowered their price targets for Tesla, with some predicting a further 80% drop in the stock price.
Musk’s wealth decline may not be over yet, as market watchers foresee more challenges ahead for Tesla. Despite these setbacks, Musk’s wealth has seen a significant increase over the past decade, driven by the rise in Tesla share prices and the success of his other ventures like SpaceX.
This story was originally featured on Fortune.com.