$10 Billion Loss: Unraveling Elon Musk’s Financial Setback

Elon Musk, the renowned entrepreneur behind Tesla and CEO of Twitter, has experienced a decline in his net worth, resulting in a loss of approximately $10 billion.

According to the Forbes billionaire index, on Tuesday, June 27, 2023, the Tesla CEO, Elon Musk lost a whopping $10.1 billion, hence his net worth fell to $224.2 billion.

Bloomberg’s billionaire index data also shows that he lost over $11 billion.

CEO of Tesla, Elon Musk, encountered a substantial setback on Tuesday, June 27, 2023 as he witnessed a staggering decline of $10.1 billion, leading to a reduction in his net worth to $224.2 billion, as reported by the Forbes billionaire index.

Additionally, data from Bloomberg’s billionaire index indicates a loss exceeding $11 billion for him during this period.

How Elon Musk lost over $10 billion of his net worth

The 4.30% drop in Elon Musk’s net worth, equating to a loss of over $10 billion, can be attributed to the steep decline of Tesla stocks, which plummeted by 6.06%.

According to the latest data, Tesla experienced a decline in its stock price, dropping from a previous closing value of $256.60 to $241.05 at the time of reporting on the United States exchange.

This decline in Tesla’s stock was accompanied by actions taken by Morgan Stanley and Barclays analysts, who downgraded the company’s stock to equal weight, as reported by Fox Business.

Additionally, Goldman Sachs, a prominent global investment bank, recently downgraded its rating on the electric vehicle (EV) manufacturer.

Citing concerns about Tesla’s profit margins in the near future and the current valuation of its stock, Goldman Sachs has downgraded its rating. The bank expressed apprehension about the company’s ability to maintain its remarkable performance, considering the substantial gains its stock has witnessed since the start of the year.

Goldman says “We believe the stock now better reflects our positive long-term view of the company’s growth positioning.” 

“While the primary reason for the change is that we think the market is now giving the stock more credit for its longer-term opportunities post the recent rally, we’re also cognizant of the difficult environment for new vehicles that we think will continue to weigh on Tesla’s automotive non-GAAP gross margin this year,” the bank added.

In the latest updates, Goldman Sachs has further downgraded Tesla stocks for the fourth time this month, resulting in their current valuation of $241.05.

Despite the downgrades, investors have been withdrawing their support from Tesla. Edward Maya, a senior market analyst at Oanda, stated to FOX Business that Tesla’s stock may need to decline by around 10% to 15% before investors regain confidence.

Tesla’s stock has once again been downgraded

 The investors’ retreat from Tesla can be attributed to the automaker’s ongoing price cuts aimed at attracting buyers, especially in light of the increasing competition in the electric vehicle market. Concerns over further price reductions by Tesla have prompted investors to sell off their shares.

At an earlier point, Elon Musk’s shares experienced a decline, momentarily placing him in the second position on the Forbes billionaire index. This occurred due to an increase in Bernard Arnault’s LVMH shares, reaching €838. However, within a few hours, Musk regained his position as Arnault’s LVMH shares dropped to €834.70.