Elon Musk Lost $41 Billion In 14 Days As Tesla's Share Dives Over 21% Since Disappointing Q3

Elon Musk needs no introduction! He is not just the richest man in the world right now but also a very socially active business magnate and investor. However, the billionaire's wealth took a huge blow after his electric car brand Tesla reported a disappointing third quarter on October 18th. The loss of wealth is at a staggering $41 billion as per the Bloomberg Billionaires Index.

Musk's Wealth:

As per the data, Musk holds the top rank in the billionaires list, however, his net worth has slipped below the $200 billion mark for the first time since June.

The Bloomberg Billionaires Index is a daily ranking of the world's richest people. Details about the calculations are provided in the net worth analysis on each billionaire's profile page. The figures are updated at the close of every trading day in New York.

According to the Bloomberg index, Musk is estimated to have lost $41 billion in net worth since Tesla's earnings. Data showed that before October 18th, Musk's net worth was at $234 billion on the 17th.

Musk alone witnessed an $8 billion drop in wealth on October 18, when his net worth stood at $226 billion. The lowest drop in five months would be on October 31st when his wealth reached $193 billion. The last time Musk's wealth was below the $200 billion mark was on June 4th at $199 billion.

Hence, Musk has lost at least $41 billion in 14 days since Tesla's Q3 (October 18th to 31st).

As of November 1st, 2023, Musk's net worth stood at $195 billion. He made nearly $2 billion in gains over the previous day.

Tesla's Disappointing Q3:

In the third quarter of 2023, Tesla produced over 430,000 vehicles and delivered over 435,000 vehicles. A sequential decline in volumes was caused by planned downtimes for factory upgrades. However, Tesla said, "Our 2023 volume target of around 1.8 million vehicles remains unchanged."

During the third quarter, Tesla's automotive revenues stood at $19,625 million, up by 5% YoY, while total revenues climbed 9% YoY to $23,350 million. Gross profit, however, declined by 22% YoY to $4,178 million.

Tesla on October 18th said, "With a combined gross profit generation of over $0.5B in Q3, our Energy Generation and Storage business and Services and Other business have become meaningful contributors to our profitability."

Further, in the bottom-line front, Tesla's net income attributable to common stockholders (GAAP) stood at $1,853 million, lower by 44% YoY, while the non-GAAP net income stood at $2,318 million declining by 37% YoY.

Also, in the quarter, adjusted EBITDA stood at $3,758 million, contracting 24% YoY. While EBITDA margins were at 16.1%, also declining by 706 basis points year-on-year.

Not just Musk, Tesla too had seen huge losses in its share price since Q3 earnings. On October 17th, Tesla's share stood at $254.85 on Nasdaq exchange. Since then, Tesla shares are down by 21.2% to $200.84 on October 31st.

According to an April 2023 filing, Musk owns about 13% of Tesla. He is also the chief executive of Tesla, the world's most valuable carmaker. The Bloomberg Billionaires Index also mentioned that he holds about 304 million exercisable stock options from his 2018 compensation package.

Additionally, Musk had pledged 58% of his Tesla shares as collateral to secure personal indebtedness, according to the company's 2023 proxy statement. The maximum loan allowable under this arrangement could be no more than the lesser of 25% of the value of those shares or $3.5 billion, according to the filing, and a $3.5 billion loan is included in his calculation, the index highlighted.

Other Musk's Assets:

Earlier, in April 2022, Musk offered to buy Twitter Inc for $44 billion, and the deal closed in October 2022. He's calculated to own about 79% of the company's stock based on a disclosure to external investors in May 2022.

Apart from this, Musk is also the founder, CEO and chief engineer of SpaceX, along with the owner and CTO of Twitter. He is also the President of the Musk Foundation, and founder of infrastructure services provider The Boring Company, technology firm X Corp, and startup xAI. He is also co-founder of other neurotechnology, artificial intelligence and digital payment services providers like Neuralink, OpenAI, Zip2 and X.com which is part of Paypal.