The recent dip in Tesla (NASDAQ:TSLA) shares has resulted in CEO Elon Musk’s net worth being adversely affected. Tesla shares ended Monday down 4.79% at $197.36 per share.
Tesla closed at $207.30 per share on the previous trading day. Considering that Elon Musk held about 715 million shares and vested options, the drop suggested that the CEO’s net worth took a hit of about $7 billion during trading hours.
Tesla’s stock has been seeing some pressure as of late. Since the Q3 2023 earnings call, Tesla shares have dropped 23%. This translated to a cut in the company’s market capitalization of about $189 billion. It also resulted in CEO Elon Musk’s net worth seeing a drop of about $41 billion.
As could be seen in the Bloomberg Billionaires Index, Musk is currently listed with a net worth of $193 billion. Despite the recent dip in his net worth, Musk remains the world’s richest person by net worth, with the next-richest billionaire, Bernald Arnault, being listed with a net worth of $156 billion. Jeff Bezos’ net worth is also listed at $156 billion as of Monday’s close.
As noted in a Fortune report, the drop in Tesla shares on Monday could be partly attributed to a report stating that longtime battery partner Panasonic was lowering the domestic production of its EV batteries. Panasonic’s adjustment in battery production would be focused on the company’s Japan-based facilities.
Only the Tesla Model S and Model X get their batteries from Panasonic’s Japan-based factories. Tesla’s Model 3 sedan and Model Y crossover, both of which comprise the lion’s share of the electric vehicle maker’s deliveries, get their batteries from US-based facilities like Giga Nevada, which is jointly operated with Panasonic.
Tesla posted a 7.6% operating margin in Q3 2023. The company also posted $1.8 billion GAAP operating income, $1.9 billion GAAP net income, and $2.3 billion non-GAAP net income in the third quarter. Overall, operating income decreased year-over-year to $1.8 billion in the third quarter, resulting in a 7.6% operating margin.
Don’t hesitate to contact us with news tips. Just send a message to email@example.com to give us a heads up.