With Tesla Inc TSLA shares dropping hard on Elon Musk‘s weak economic outlook from the company’s recent earnings call, the CEO’s net worth has also taken a hit by a massive $30 billion.
What Happened: Tesla reported its third-quarter financial results after market close on Wednesday.
Tesla reported third-quarter revenue of $23.35 billion, which was up 9% year-over-year. The revenue total, however, missed a Street consensus estimate of $24.38 billion. The company’s profit of $1.85 billion was lower quarter-on-quarter as well as year-on-year.
The CEO’s comments on rising interest rates, hinting at future price cuts, and subsequent slowdown in developments, including the Gigafactory in Mexico, sent shares tumbling. The company also refused updates on the deployment of its humanoid robot Optimus at its factories and the timeline for delivering the refreshed Model 3 in the U.S..
"If the macroeconomic conditions are stormy, even if the best ship is still going to have tough times, the weaker ships will sink. We’re not going to sink. But even a great ship in a storm has challenges," the CEO said during the call.
Shares of Tesla dropped 15.2% this week to $211.99 as of close on Friday after opening at $250.10 on Monday. This is also reflected in the billionaire CEO’s net worth.
Impact On Musk’s Net Worth: As of Tuesday, the billionaire’s net worth stood at a staggering $234 million. This dropped $30 billion during the course of the week and now stands at $204 billion, as per Bloomberg Billionaire’s Index.
Despite the drop, Musk continues in the position of the world’s richest individual, seconded by CEO of LVMH Bernard Arnault.
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