Emmanuel OchayiTesla’s stocks plummeted by 9%, causing Elon Musk’s net worth to shrink by $24 billion. Despite this setback, Musk still holds the title of the world’s wealthiest individual, with a net worth of $231 billion.
This decline in Tesla’s share price is directly linked to the company’s underwhelming Q3 performance, as revealed by data from the Forbes billionaire index. Tesla’s shares fell a significant 9.3% from $245 on Wednesday to $220 by Thursday evening.
During this quarter, Tesla reported a net income of $1.85 billion, marking a 44% decrease compared to the same period in the previous year. Musk’s ownership stake in Tesla, which accounts for approximately 21% of his wealth, took a hit.
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Despite these challenges, Tesla did manage to achieve a 9% year-over-year growth in total revenue, reaching $23.4 billion. However, this figure fell short of the previous quarter (Q2), when the company reported revenue of about $21.3 billion.
The disappointing results also extended to the company’s earnings, dropping from 91% in Q2 to 66% in Q3, failing to meet investor expectations. FactSet had predicted $24.2 billion in revenue and 72 cents per share in earnings, but these targets were missed.
Although Tesla did report the sale of 435,059 vehicles in the July-September period, indicating a 27% increase from the previous year, this still fell short of the 461,000 vehicle sales that analysts had forecasted, according to FactSet Research.
Despite the challenges, Elon Musk remains the world’s richest person, and Tesla maintains its position as the eighth-largest company in the world by market capitalization, with a value of $695.7 billion, according to Motley Fool.
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