Elon Musk’s Net Worth Decreases by $13.6 Billion Following Tesla Stock Drop
Shares of Tesla Inc. plummeted, causing Elon Musk’s wealth to decline by $13.6 billion on Thursday. This drop occurred following the company’s announcement that it might need to continue reducing the prices of its electric vehicles.
The drop in net worth to $241 billion further narrows the wealth gap between Musk and Bernard Arnault, the world’s two richest people, according to the Bloomberg Billionaires Index. Musk’s fortune still exceeds that of Arnault, chairman of luxury goods maker LVMH, by about $40 billion.
Shares of Austin-based Tesla fell 7% to $271.02 at 11:30 a.m. in New York after the company warned of more hits to its already shrinking profitability. Months of price reductions have weighed on the gross margin percentage of the automotive industry, which fell to its lowest level in four years in the second quarter. Musk said Wednesday that Tesla will have to keep cutting prices if interest rates continue to rise.
Musk, 52, derives his wealth primarily from his stake in an electric vehicle maker, as well as his holdings in Space Exploration Technologies and Twitter. His fortune grew by about $118 billion this year through Wednesday, as Tesla shares surged 136 percent.
The 74-year-old Arnault’s net worth has increased by $40.7 billion to $203 billion this year. Shares of Paris-based LVMH have risen 25% in 2023.
