New Delhi, 21st July 2023: Elon Musk’s fortune fell by $20.3 billion on Thursday as Tesla Inc. warned that it may have to continue lowering the prices of its electric vehicles, sending shares plummeting.
The dip in net worth to $234.4 billion is the seventh-largest drop in the Bloomberg Billionaires Index’s history, and it narrows the wealth gap between Musk and Bernard Arnault, the world’s two richest persons. Musk’s worth is still around $33 billion greater than that of Arnault, chairman of luxury goods company LVMH.
Musk was not the only US technology millionaire who faced a drop in his fortunes. Jeff Bezos of Amazon Inc., Larry Ellison of Oracle Corp., Steve Ballmer of Microsoft Corp., Mark Zuckerberg of Meta Platforms Inc., and Larry Page and Sergey Brin of Alphabet Inc. all lost $20.8 billion in net value as the tech-heavy Nasdaq 100 sank 2.3%.
Tesla shares fell 9.7% to $262.90 in New York, the most since April 20, as the firm warned of more losses to its already-shrinking profits. Months of markdowns have taken their toll on the automotive gross margin, which dropped to a four-year low in the second quarter.
Musk, the company’s CEO, stated on Wednesday that if interest rates continue to climb, Tesla will have to continue decreasing pricing.
Musk’s fortune stems mostly from his share in the electric vehicle company, as well as his holdings in Space Exploration Technologies and Twitter. Through Wednesday, his fortune had soared by nearly $118 billion due to a 136% increase in Tesla stock.
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