Elon Musk’s Wealth Plummets by Over $16 Billion Amid Tesla’s Market Downturn

Elon Musk, the world’s wealthiest individual, experienced a significant decrease in his wealth on Wednesday as Tesla’s stock price plummeted, impacting the net worths of several other billionaires linked to various companies.

Although Musk’s loss was the most substantial, he wasn’t alone in facing financial setbacks. Several high-profile billionaires saw their fortunes shrink amid disappointing earnings reports. Bernard Arnault, Europe’s richest person, lost $8 billion after his luxury conglomerate LVMH reported lower-than-expected quarterly sales. Google cofounders Sergey Brin and Larry Page each saw their wealth diminish by about $5 billion as Alphabet’s stock dropped following a caution about rising expenses in the company’s Tuesday earnings call. Meta CEO Mark Zuckerberg’s net worth decreased by $6 billion due to Meta’s stock decline, which is closely tied to Alphabet due to its shared dependence on digital advertising revenue.

By late morning, Musk’s net worth had fallen by over $16 billion, from $249 billion to $232 billion, driven by a 12% drop in Tesla’s stock following its earnings report, which disclosed a fourth consecutive quarter of notable profit declines.

The one-day decrease in Musk’s net worth is roughly equal to the entire fortune of James Ratcliffe, the second-richest individual in the United Kingdom. Despite this, Musk remains more than $30 billion wealthier than the world’s next-richest person, Amazon founder Jeff Bezos, even after the value of his 13% stake in Tesla fell from about $101 billion to $89 billion.

Beyond Tesla, Musk’s wealth is primarily comprised of his stakes in private aerospace company SpaceX and artificial intelligence startup xAI. Recently, Musk has been in the spotlight for his support of Republican presidential nominee Donald Trump, to whom he is providing financial backing, though Musk has denied claims that he is contributing $45 million monthly to Trump’s campaign.

Trump’s name surfaced twice during Tesla’s earnings call on Tuesday, both times in a context unfavorable to Tesla. Musk mentioned that production at Tesla’s “Gigafactory” in Mexico was halted due to Trump’s proposed tariffs and noted that Trump’s potential plans to reduce tax credits for electric vehicle buyers “would hurt Tesla slightly” in the short term.

Have you read?
Richest Billionaire Investors.
Billionaire Winners.
Billionaire Losers.
Best Business Schools.
Best Hotel Schools.