This week saw a significant drop in Elon Musk‘s net worth, which tumbled to $193 billion, according to Bloomberg’s Billionaire Index. This marks the first time since June that the Tesla CEO’s net worth has fallen below the $200 billion mark. The decline can be attributed to Tesla‘s disappointing quarterly earnings report, as Musk, who owns approximately 13% of the electric car company, experienced a notable financial setback.
The Tesla Issue
The Tesla stock has witnessed a substantial decline of over 18% since the Q3 2023 earnings call held on October 18, 2023. Additionally, on Monday, it experienced an additional drop of nearly 5% in response to reports indicating that Panasonic, a longstanding partner and supplier to the EV manufacturer, had scaled back its battery cell production in Japan during the period ending September 2023.
Bloomberg’s calculations indicate that Musk’s wealth has dwindled by a staggering $41 billion since Tesla‘s lackluster earnings call on October 18. His net worth was reported to be around $234 billion before the disappointing performance was announced.
Forbes offers a slightly higher estimate of Musk’s net worth, placing it at $213.8 billion but still noting a recent loss of approximately $1 billion. Nevertheless, as of October 31, both Bloomberg and Forbes agree that Elon Musk retains his status as the world’s wealthiest individual.
Musk’s diverse portfolio includes ventures such as SpaceX and the Boring Company, in addition to Tesla, which collectively contribute to his substantial wealth.
The Twitter Issue
In April 2022, Musk acquired a high-profile asset, Twitter, which he subsequently rebranded as “X.” The acquisition came with a price tag of $44 billion and Musk now possesses a commanding 74% ownership of the social media platform. As of Monday, the company self-assessed its value at $19 billion, approximately 55% less than Musk’s acquisition price last year. Musk himself acknowledged overpaying as one of the reasons for attempting to back out of the deal.
In November 2022, his net worth experienced a dip to an estimated $195.6 billion, marking its lowest point in 2022, according to Forbes. It had previously seen a significant decline in October 2021 when it fell below the $200 billion threshold.
The November 2022 dip set a record for the largest loss of personal wealth in history, according to Guinness World Records. Guinness cited Forbes and reported that Musk had shed approximately $182 billion of his net worth since November 2021, with some estimates suggesting losses of up to $200 billion.
Musk’s acquisition of Twitter also had financial repercussions, as he sold nearly 8 million Tesla shares, valued at $7 billion, in August 2022 amid a legal battle with Twitter. This move temporarily dropped him to the No. 2 position on Forbes’ Real-Time Billionaires list, with Bernard Arnault and his family, owners of the luxury goods conglomerate LVMH, claiming the No. 1 spot.