“Elon Musk’s $20B Loss: This price warning from Tesla Why?

“Elon Musk’s $20B Loss: This price warning from Tesla Why?
Source: Twitter

Elon Musk’s wealth decreased by $20.3 billion on Thursday after Tesla issued a warning about potentially lowering the prices of its electric vehicles, causing the company’s shares to drop. His net worth now stands at $234.4 billion, which is still higher than that of Bernard Arnault, the chairman of luxury goods maker LVMH, by around $33 billion.

This decline in wealth is the seventh-largest ever recorded in the Bloomberg Billionaires Index.Other technology billionaires in the US also experienced a tough day, with Jeff Bezos of Amazon.com, Larry Ellison of Oracle Corp., Steve Ballmer, the former CEO of Microsoft Corp., Mark Zuckerberg of Meta Platforms Inc., and Larry Page and Sergey Brin, co-founders of Alphabet Inc., collectively losing $20.8 billion in net worth as the tech-heavy Nasdaq 100 index fell 2.3%.Tesla’s stock price fell by 9.7% to $262.90 in New York, the largest drop since April 20, following the company’s warning about its profitability.

Continuous price reductions have impacted the company’s automotive gross margin, reaching a four-year low in the second quarter. Musk mentioned that Tesla might have to keep reducing prices if interest rates continue to rise.Elon Musk’s wealth primarily comes from his stake in Tesla, as well as his holdings in Space Exploration Technologies and Twitter.

His wealth had increased by approximately $118 billion this year until Wednesday, due to the significant rise in Tesla’s share price (136%). On the other hand, Bernard Arnault’s net worth rose by $39 billion this year, reaching $201.2 billion, thanks to a 26% gain in LVMH’s shares in 2023.

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