Elon Musk’s status as the “world’s richest man” is currently in jeopardy, as his immense wealth has experienced a significant decline. While Musk’s net worth was estimated to be around $232 billion last month, his fortunes have recently taken a notable hit.
Musk, the visionary behind Tesla and SpaceX, has been remarkably profitable with his high-tech electric car company since 2013. However, for the first time in a decade, Tesla failed to meet its revenue targets, resulting in a substantial decrease in Musk’s vast fortune.
Tesla’s third-quarter earnings report for 2023, released on Thursday, paints a concerning picture. Musk, who owns a 13 percent stake in Tesla, is directly impacted by the company’s performance. If Tesla does well, so does he; conversely, if the company struggles, so does Musk.
The earnings report revealed a decline in quarterly sales, with 435,059 vehicles sold, even though Musk had significantly reduced car prices. As a result, Tesla’s stock prices plummeted by 9.3 percent following the report’s release.
Despite these setbacks, Forbes reports that Musk’s net worth still stands at a substantial $225.2 billion, allowing him to retain the title of the “world’s richest man,” at least for the time being. Bernard Arnault & family ranks second with $174 billion, while Jeff Bezos follows in third place with $148 billion.
This isn’t the first time Musk’s wealth has faced a downturn this year. In July, Tesla’s stock prices dropped by 9.7 percent, resulting in a $20 billion reduction in Musk’s net worth.
Nevertheless, Musk remains optimistic about Tesla’s prospects, particularly with the forthcoming release of the Cybertruck. He anticipates that Tesla will have nearly two million customers by year-end, some of whom will own the futuristic-looking trucks. Initial deliveries for the Cybertruck are set to begin in late November.
According to Tesla’s website, the new vehicle “is built with an exterior shell made for ultimate durability and passenger protection.” The company emphasizes the Cybertruck’s robust design, including “Ultra-Hard 30X Cold-Rolled stainless-steel structural skin” and “Tesla armor glass.”
However, Musk acknowledges the challenges associated with manufacturing the Cybertruck. He stated during an investor call that “there will be enormous challenges in reaching volume production with the Cybertruck and in making the Cybertruck cash-flow positive.”
Despite one million pre-orders for the truck, Tesla’s Texas factory can only produce 125,000 Cybertrucks annually. Nevertheless, Musk remains adamant that the Cybertruck is Tesla’s “best product ever.”
The future will ultimately reveal whether Musk can maintain his status as the “world’s richest man” amidst these challenges.
