Billionaire Elon Musk just lost $22 billion as Tesla shares tumble 9.3%

Since Thursday, billionaire Elon Musk has experienced a reduction in his fortune of more than US$22 billion due to Tesla’s disappointing third-quarter financial results, which hurt stock prices. The decrease in net worth to $204 billion is monumental, and further reduces the wealth gap between Musk and Bernard Arnault, the planet’s two wealthiest individuals.

Tesla’s stock dropped by 9.3 percent to US$220.11 in New York on Thursday due to its inability to meet estimated earnings and sales goals for the quarter.

Musk, who retains the title of the wealthiest individual on the planet with his wealth totaling $204 billion, holds a 12.95 percent stake in Tesla Inc. Musk’s fortune still exceeds that of Bernard Arnault, the founder and CEO of luxury goods giant LVMH, by about $51 billion. The Tesla CEO’s wealth is up by more than $66.8 billion in 2023.

• Elon Musk’s net worht on Oct 17th, 2023: $234 billion
• Elon Musk’s net worht on Oct 18th, 2023: $226 billion
• Elon Musk’s net worht on Oct 19th, 2023: $210 billion
• Elon Musk’s net worht on Oct 19th, 2023: $204 billion

The electric-vehicle juggernaut sales dropped for the first time this year, with 435,059 vehicles delivered, accompanied by a decline in margins to the lowest in four years due to the company’s decision to lower prices on their cars.

Tesla has projected that it’ll have placed 1.8 million customers in new vehicles by the end of the year. The company, which is the most valuable vehicle producer in the world, stated that it would be launching its much-anticipated Cybertrucks in November, two years later than originally planned.

Elon Musk, aged 52, mainly gains his wealth from his investment in the electric vehicle producer, plus his ownership of Space Exploration Technologies and Twitter. His counterpart, Bernard Arnault, 74, has seen his fortune decline by $8.86 billion in 2020, totaling $153 billion.

Tesla, Inc. announced that they will report Q3, 2023 results After-Market on Oct 18, 2023

Tesla Third quarter 2023 results:

EPS: US$0.58 (down from US$1.05 in 3Q 2022).
Revenue: US$23.4 billion (up 8.8% from 3Q 2022).
Net income: US$1.85 billion (down 44% from 3Q 2022).
Profit margin: 7.9% (down from 15% in 3Q 2022). The decrease in margin was driven by higher expenses.
Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) also missed analyst estimates by 15%.

Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Auto industry in the US.

Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth.

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