Elon Musk has suffered a colossal loss of wealth in the last few hours due to the most recent fiascos of his three major companies. In the course of 24 hours alone, the tycoon lost nearly $13 billion of his massive fortune after the release of disappointing financial results from Teslathe explosion of the rocket Starship from SpaceX and the change of the account verification system of Twitter.
However, the plethora of bad runs by his companies over the past two days has not caused the businessman to lose his title as the world’s second richest person behind Bernard ArnaultFrench fashion tycoon, who managed to take the top spot from him last month, according to the Bloomberg Billionaires Index.
After this large cutback, the fortunes of. Musk fell to $164 billion in total, which moves it well away from Arnaud’s $211 billion and leaves it much closer to other competitors in the Index such as. Jeff Bezosfounder of Amazonwhich accumulates 128 billion and Bill Gatesco-founder of Microsoftwhich has assets of $122 billion.
Disasters for Elon Musk in record time.
The first lunge for the tycoon occurred last Wednesday, April 19, when investors in Tesla Motors, a company dedicated to the manufacture of electric cars, caused the company’s shares to drop 9.75% to $162.99 following the release of its first quarter 2023 financial results a day earlier. Despite the fact that analysts at Wall Street contemplated revenues of $26.617 billion, the firm ended at $23.329 billion despite its high margin of 19.3% profit per vehicle sold.
However, the main problem behind this crisis was the drop in prices which Tesla announced earlier this year to increase demand, causing a 24% drop in its net income in Q1 2023 to $2.513 billion compared to the same period in 2022. As is well known, the majority of Musk’s fortune comes from his stake in Tesla, including stock and options, despite the fact that he SpaceX has also been gaining valuation.
Starship’s explosion impacted Musk’s fortunes.
While the wounds from the financial reports of Tesla were still open, Elon Musk saw another problem appear for his fortune: the explosion of the giant rocket. Starship from SpaceX. During its first test flight from the company’s Boca Chica facility in south Texas, the promising spacecraft ended up exploding within four minutes of liftoff.
The company behind the craft that will be vital to the return of humans to the moon and the first manned mission to Mars was pre-funded at $750 million in January and was valued at $137 billion. Of course, this figure could change in the next few days because of what happened with the launch.
On the other hand, the coffers of Elon Musk also suffered when the change to the account verification system of Twitterwhich caused several celebrities present on the social network to lose their blue checks because they were not subscribed to Twitter Blue. This move has provoked a huge wave of criticism. and has generated an impact on investment in the company behind the platform.
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