Elon Musk’s wealth, the world’s richest person’s fortune, has decreased by a staggering $20.3 billion in just one day. The main reason for this is said to be the drop in Tesla’s shares. After the decline in wealth, there is now a considerable gap between Elon Musk and Arnault’s net worth. Let’s delve into this report to learn more.
Why Elon Musk Loses $20 Billion in a Day
Yesterday, on Thursday, there was a decline seen in Tesla Inc.’s shares. Its direct impact has been on the company’s owner, Elon Musk’s total wealth. According to Bloomberg Billionaires Index, this is the seventh largest decline ever. Let’s find out more about it in this report.
A decline in Tesla Inc.’s shares has been witnessed yesterday. This has also affected Elon Musk’s overall wealth. In just one day, Elon Musk’s total wealth has decreased by $20.3 billion. The major reason for the decline in wealth is the price of Tesla’s electric vehicles. In fact, the prices of Tesla’s electric vehicles have been reduced, and this reduction might continue. As a result, there could be a decline in Tesla’s shares.
After the decline in total wealth, there has been a decrease in the difference in the value of Musk’s and the world’s second richest person, Bernard Arnault’s wealth. Arnault is the chairman of the luxury goods company LVMH. Even after the decline in Tesla’s shares, Musk’s wealth is still about $33 billion more than Arnault’s.
Not only Musk but the net worth of other billionaires has also seen a decline. Along with them, Jeff Bezos of Amazon.com Inc., Larry Ellison of Oracle Corp., former Microsoft Corp. CEO Steve Ballmer, Mark Zuckerberg of Meta Platforms Inc., and co-founders of Alphabet Inc., Larry Page, and Sergey Brin have all experienced a decline in their total wealth. The total decline in their wealth is $20.8 billion. This decline comes as the tech-heavy Nasdaq-100 shares have dropped by 2.3%.
On Thursday, Tesla’s shares recorded the highest decline in New York’s share market. Tesla’s shares, based in Austin, fell by 9.7% to $262.90. This is the highest decline seen after April 20. The company had already warned about the declining profit. This decline has impacted the automotive gross margin and brought it to levels lower than four years ago in the second quarter.
Tesla’s shares are declining because Musk stated that if interest rates continue to rise, Tesla will have to reduce the prices of its electric vehicles. The decline in automotive gross margin, which brought it to levels lower than four years ago in the second quarter, has already been impacted by months of markdowns.
Elon Musk And Arnault’s Net Worth
52-year-old Musk’s fortune includes his shareholding in Tesla, as well as stakes in SpaceX and Twitter. His wealth increased by about $11.8 billion by this year’s Wednesday. Meanwhile, Tesla’s shares rose by 136%.
In contrast, the net worth of 74-year-old Arnault has increased to $201.2 billion this year, growing by $39 billion. Along with this, LVMH’s shares have also seen a 26% increase.
Mukesh Ambani And Gautam Adani Come Up In The List Of World’s Richest People
According to the Bloomberg Billionaires Index, Mukesh Ambani, Chairman of Reliance Industries Limited, is ranked 11th in the list of the world’s richest individuals. On the other hand, Gautam Adani, Chairman of Adani Enterprises Ltd, holds the 22nd position in the ranking.”
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