Tesla Inc’s recent first-quarter results have disappointed investors, causing the company’s shares to plummet by 9.75 per cent on Thursday to $162.99.
This had a direct impact on the billionaire Elon Musk’s net worth, as his wealth dropped by $12.6 billion, the biggest decline this year, according to the Bloomberg Billionaires Index.
Musk’s fortune largely depends on his stake in Tesla, including shares and options, which accounts for the most significant part of his $163.9 billion net worth. However, SpaceX has become increasingly important as its valuation soars, and Musk remains the CEO of both companies.
News About Nigeria gathered that the disappointment for Tesla investors was compounded by the failure of an experimental Starship rocket designed by SpaceX.
The rocket achieved liftoff in Boca Chica, Texas, but exploded about four minutes later in a fiery ball above the Gulf of Mexico.
This setback may cause further concern for investors in the space exploration company, especially as Musk’s attention may be focused more on Tesla in the short term.
In addition to these setbacks, Twitter, which Musk acquired last year, caused controversy as many users lost their blue checkmarks for choosing not to pay $8 per month for the privilege. This sparked a backlash on the social media site, which Musk had promised weeks ago.
Despite these setbacks, Musk remains the world’s second-richest person, behind French luxury tycoon Bernard Arnault, and has seen his fortune rebound by $26 billion since last year.
It remains to be seen whether these recent setbacks will have a lasting impact on his net worth and the fortunes of his companies.