Elon Musk’s net worth was reduced by $24 billion as a result of the 9% decline in Tesla’s stock price. Despite this, with a net worth of $231 billion, he continues to be the richest man in the world.
According to information from the Forbes Billionaire Index, the decline in Tesla’s share price can be ascribed to the company’s dismal Q3 performance. By Thursday night, Tesla’s shares had fallen from $245 on Wednesday to $220, a 9.3% decline.
Tesla’s net income for the current quarter was $1.85 billion, a 44% decrease from the same time the year prior.
The approximate 21% ownership position Musk has in Tesla accounts for a significant 68% of his net worth. Tesla was able to increase its overall sales in Q3 by 9% year over year, bringing it to $23.4 billion.
But compared to the second quarter, when the business reported revenue of roughly $21.3 billion, this number was lower.
The company’s earnings decreased as well, going from 91% in the second quarter to 66% in the third. Investor expectations were not met by these numbers; according to FactSet, $24.2 billion in revenue and 72 cents per share in earnings were expected.
In fact, Tesla reported selling 435,059 units between July and September, a 27% increase from the prior year.
However, according to FactSet Research, this fell short of the 461,000 vehicle sales that analysts had predicted.
Analysts believe that Musk’s recent comments made during an earnings call are mostly to blame for the stock price decrease. Musk voiced his worries about the overall state of the world economy, stating that “interest costs in the U.S. have increased substantially,” and calling the present market a “challenging economic environment.”
In addition, he spoke of the necessity for the business to reduce costs and control early anticipations for the impending Cybertruck product.
Despite this, according to Motley Fool, Musk continues to rank as the richest man in the world, and Tesla continues to rank as the eighth-largest corporation in the world by market capitalization, valued at $695.7 billion.
