Elon Musk Loses $13 Billion In A Day After Tesla Shares Crash Nearly 10% & SpaceX Rocket Explodes
The last 24 hours have been tumultuous for the world¡¯s second-richest person, Elon Musk. Not one or two, but three reasons led to the billionaire losing $13 billion in a single day, his net worth¡¯s biggest downfall this year.
The last 24 hours have been tumultuous for the world¡¯s second-richest person, Elon Musk. Not one or two, but three reasons led to the billionaire losing nearly $13 billion in a single day, his net worth¡¯s biggest downfall this year.
Three Reasons For The $13 Billion Downfall
Reuters
Firstly, his EV firm Tesla, disappointed investors yesterday with its first-quarter results, sending the electric-car maker¡¯s shares down 9.75% on Thursday to $162.99 on NASDAQ. But it's noteworthy that despite this fall, Tesla's shares are still up more than 50% this year.
As per the CNBC report, Tesla reported a more than 20% drop in net income and EPS compared with the year-ago quarter. The Tesla CEO also suggested that the company would prefer higher volumes to higher margins, a comment that prompted some concern from analysts.
The second reason is the explosion of an experimental Starship rocket designed by SpaceX that had achieved liftoff in Boca Chica, Texas. It exploded about four minutes later in a fiery ball above the Gulf of Mexico, as per a Bloomberg report.
Last but not least, the third reason that made the last 24 hours tumultuous for Musk is that on Twitter, as Musk promised weeks ago, many users lost their legacy blue checkmarks for choosing not to pay $8 per month for the privilege.
Elon Musk has over 135 million followers on Twitter.
Also Read: List Of Companies Co-Founded/Headed By Elon Musk
Biggest Decline This Year
When it comes to Elon Musk's net worth, Tesla¡¯s sinking share price yesterday had the most immediate consequences, with the EV's CEO seeing his wealth drop by $12.6 billion as a result, according to the Bloomberg Billionaires Index. This is his biggest decline this year to date.
Elon Musk's stake in Tesla, including shares and options, makes up the biggest part of his $163.9 billion fortune, though SpaceX has become more important as its valuation soars, as per the report.
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Musk's Reaction To The Tumultuous Day
At Tesla, Elon Musk acknowledged ¡°it¡¯s difficult to say what the margin will be¡± when reportedly asked what level of profitability the company was comfortable with. For SpaceX, Musk congratulated employees and said he¡¯s optimistic about the program¡¯s progress and the next test launch.
Congrats @SpaceX team on an exciting test launch of Starship!
¡ª Elon Musk (@elonmusk) April 20, 2023
Learned a lot for next test launch in a few months. pic.twitter.com/gswdFut1dK
And on Twitter, among other things, he replied to a tweet about April 20¡ªknown as 420 Day and an unofficial pot holiday. It¡¯s ¡°shaping up to be quite the day!¡± Musk tweeted. Today morning, he again tweeted "Such a great day in so many ways".
Such a great day in so many ways
¡ª Elon Musk (@elonmusk) April 21, 2023
Also Read: Timeline Of Elon Musk-Twitter's $44 Billion Deal
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