Elon Musk loses $12.6 billion in one day as Tesla shares tumble, SpaceX rocket blows up

A $12.6 billion chunk was hacked off Elon Musk’s wealth pile on Thursday, after shares of Tesla Inc. saw the biggest one-day loss since the start of the year.

The net worth of Tesla’s

CEO, who has at times held the spot as the world’s wealthiest person, stood at $164 billion as of Thursday, according to Bloomberg’s Billionaire Index. That makes him No. 2 in terms of wealth, well behind Bernard Arnault, the chair and CEO of luxury goods giant LVMH Moet Hennessy Louis Vuitton SE
who is worth $211 billion.

Read: Who is Bernard Arnault, the world’s richest person with a $210 billion fortune?

Musk’s nearly $13 billion wealth plunge on Thursday marked the biggest one-day drop for him this year, Bloomberg reported separately. Disappointment over the electric-car maker’s quarterly margins and a pledge by the company to keep cutting prices triggered an exodus out of Tesla stock, which dropped 9.7%.

Read: Tesla’s stock confirms bearish ‘double top,’ and other chart patterns

And: Tesla price cuts do not ‘come without pain,’ but the EV maker is thinking long term on customer value, says one Wall Street analyst

The market cap of Facebook parent Meta Platforms Inc.
topped that of Tesla for the first time in 16 months on Thursday, as $55.69 billion was wiped off the EV maker’s market value.

Musk’s wealth surged at the start of the year as Tesla shares rebounded amid a broader bounce for technology stocks from a tumble in 2022. But the trajectory since February has been bumpy. A dark day for Tesla shares on Thursday coincided with drama for Musk’s unmanned SpaceX Starship rocket, which exploded minutes after launching.

His wealth is spread across his businesses, with Tesla accounting for $67 billion, and his share of SpaceX estimated to be worth $48.9 billion, according to Bloomberg.

Twitter, which he bought last year for $44 billion, on Thursday removed verified blue checks from most accounts that were not paying the Twitter Blue subscription service that starts at $8 a month. Musk said in a tweet late Thursday that he was personally paying for the accounts of three people — author Stephen King, NBA player LeBron James and actor William Shatner.