Elon Musk, world’s richest man. saw a slump in hos fortune on Thursday on the back of weak third-quarter earning from Tesla.
Elon Musk’s fortune slumped by $16.7 billion on Thursday, as per reports.
Elon Musk posses a fortune of $209 billion. The Tesla CEO owns 13% of Tesla and derives the majority of his wealth from the auto company.
Tesla’s shares fell by 9.3% after it missed both earnings and sales expectations for the quarter.
In a conference call following the earnings release Wednesday, Elon Musk repeatedly mentioned the toll of high interest rates on consumer confidence, Bloomberg reports.
Elon Musk’s Tesla reported its first quarterly fall in sales this year, delivering 435,059 vehicles, while margins fell to the lowest in over four years after the company repeatedly cut prices for its cars.
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Still, Musk’s wealth is up by more than $70 billion in 2023 alongside a rebound in Tesla shares despite the deteriorating fundamentals. After briefly being overtaken by LVMH’s Bernard Arnault, he’s once again the world’s wealthiest person by a wide margin.
Despite its struggles, Tesla maintains that it will put 1.8 million customers into new vehicles by the year-end. Tesla remains the most valuable vehicle producer in the world and said it will deliver its first long-awaited Cybertrucks in November, about two years behind schedule.
CEO Elon Musk said Tesla had managed to maintain demand with a series of price cuts but added he was concerned that rising interest rates would make cars unaffordable.
Higher financing costs meant the price of the popular Model Y SUV was “almost unchanged” for consumers despite price cuts, Elon Musk said.
Earlier this month, Tesla cut prices for its Model 3 and Model Y vehicles in the US.
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Business NewsCompaniesPeopleElon Musk’s fortune slumps by $16.7 billion following Tesla’s weak third-quarter earnings