Tesla Inc. recently issued a warning about potential price reductions for its electric vehicles, causing a significant decrease in Elon Musk’s wealth. On Thursday, Musk’s fortune dropped by $20.3 billion, bringing his total assets to $234.4 billion. This decline in wealth ranks as the seventh-largest in the Bloomberg Billionaires Index. Despite the setback, Musk still maintains a lead over Bernard Arnault, chairman of luxury goods producer LVMH, with a difference of approximately $33 billion.
Musk wasn’t the only tech billionaire to experience a challenging day. Jeff Bezos of Amazon.com Inc., Larry Ellison of Prophet Corp, Steve Ballmer, former President of Microsoft Corp., Mark Zuckerberg of Meta Platforms Inc., and Larry Page and Sergey Brin, co-founders of Alphabet Inc., collectively lost $20.8 billion in assets as the tech-heavy Nasdaq 100 dropped by 2.3%.
Shares of Tesla based in Austin fell by 9.7% to $262.90 in New York, the steepest decline since April 20, following the company’s warning of potential setbacks to its already contracting profit. Continued discounts have negatively impacted automotive gross margin, reaching a four-year low in the second quarter. Musk, also the company’s President, stated that Tesla would need to further reduce costs if interest rates continue to rise.
Musk, aged 52, primarily derives his wealth from his stake in the EV manufacturer, as well as his investments in Space Exploration Technologies and Twitter. His net worth had increased by $118 billion this year until Wednesday, driven by a 136% surge in Tesla’s stock.
Meanwhile, Arnault, aged 74, has witnessed a $39 billion increase in his net worth, bringing it to $201.2 billion. LVMH’s shares, based in Paris, have gained 26% in 2023.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.