Elon Musk's wealth slumps US$13.6B as Tesla shares tumble
BNN Bloomberg
Elon Musk’s fortune slumped US$20.3 billion Thursday after Tesla Inc. warned it may have to keep cutting the prices of its electric vehicles, sending shares tumbling.
The drop in net worth to $234.4 billion is the seventh-largest decline ever among those in the Bloomberg Billionaires Index, and further narrows the wealth gap between Musk and Bernard Arnault, the world’s two richest people. Musk’s fortune still exceeds that of Arnault, chairman of luxury goods maker LVMH, by about $33 billion.
Shares of Austin-based Tesla slid 9.7 per cent to $262.90 in New York, the most since April 20, after the company warned of more hits to its already-shrinking profitability. Months of markdowns have taken a toll on automotive gross margin, which fell to a four-year low in the second quarter. Musk said Wednesday Tesla will have to keep lowering prices if interest rates continue to rise.
Musk, 52, derives his wealth primarily from his stake in the EV manufacturer, as well as his holdings in Space Exploration Technologies and Twitter. His wealth had increased about $118 billion this year through Wednesday, as shares of Tesla climbed 136 per cent.
