Elon Musk’s Net Worth Drops $16 Billion as Tesla Stock Falls

On Wednesday, Elon Musk, the world’s wealthiest individual, saw a significant reduction in his net worth as Tesla’s stock price experienced a steep decline. This drop had a substantial impact not only on Musk’s financial standing but also contributed to a broader downturn in the stock market. By late morning, Musk’s net worth had decreased by more than $16 billion, falling from $249 billion to approximately $232 billion, based on real-time financial estimates.

This dramatic loss in Musk’s wealth is closely tied to the performance of Tesla’s stock, which fell by 12% following the release of the company’s latest earnings report. The report highlighted a concerning trend: Tesla had experienced its fourth consecutive quarter of significant profit declines. The disappointing earnings figures intensified concerns about the company’s financial health and future prospects, which in turn led to a sharp sell-off in Tesla shares and exacerbated the overall market decline.

The extent of Musk’s financial decline in just one day was so substantial that it nearly equaled the total net worth of James Ratcliffe, who is the second-wealthiest person in the United Kingdom. Despite this considerable drop, Musk still maintains a significant lead over the next richest person globally, Amazon founder Jeff Bezos. Even with the diminished value of his 13% stake in Tesla—declining from about $101 billion to $89 billion—Musk’s wealth continues to exceed Bezos’s by over $30 billion.

Musk’s steep drop in net worth is the most notable among billionaires affected by recent market fluctuations, but he is not alone in facing such substantial financial losses. Other prominent figures also saw their fortunes diminish sharply on Wednesday, largely due to adverse earnings reports.

Bernard Arnault, the richest person in Europe, saw his net worth decline by $8 billion following disappointing quarterly sales figures reported by his luxury goods conglomerate, LVMH. The company’s sales fell short of market expectations, leading to a decline in its stock price and a corresponding drop in Arnault’s wealth. Additionally, Sergey Brin and Larry Page, cofounders of Google, experienced a combined net worth reduction of approximately $10 billion. This drop followed a warning from Alphabet, Google’s parent company, about escalating expenses, which negatively impacted the company’s share price.

Mark Zuckerberg, CEO of Meta, also faced a financial setback, with his net worth decreasing by $6 billion as Meta’s stock price fell. This decline was partly due to Meta’s heavy reliance on digital advertising revenue, which is closely linked to Alphabet’s performance. The broader trend of financial strain among high-profile billionaires is indicative of the widespread impact of disappointing earnings reports across various sectors.

Beyond Tesla, Musk’s remaining wealth is significantly tied to his investments in SpaceX, a private aerospace company, and xAI, a generative artificial intelligence startup. These ventures represent a substantial portion of Musk’s net worth outside of Tesla. Despite his controversial public persona and recent involvement in supporting Republican presidential nominee Donald Trump, Musk’s financial status is heavily influenced by his business interests beyond the electric vehicle market.

Recent headlines have highlighted Musk’s financial support for Trump, although the exact amount remains unspecified. Reports suggesting that Musk is contributing $45 million monthly to Trump’s cause have been refuted by Musk himself. This controversy follows statements Musk made during Tesla’s earnings call, where Trump’s policies were discussed in a negative light.

On the earnings call, Musk revealed that production at Tesla’s “Gigafactory” in Mexico is currently on hold due to potential tariffs proposed by Trump. Additionally, Musk expressed concerns that Trump’s plans to reduce tax credits for electric vehicle buyers could have a short-term adverse effect on Tesla’s sales and profitability. As these developments continue to unfold, the broader implications for the stock market and Musk’s financial future remain a topic of significant interest and scrutiny.