The wealth of the world’s richest man, Elon Musk, jumped more than $15 billion in one day as Tesla shares fell the most in four months after the carmaker blamed disappointing delivery reports on shipment issues, leaving customers behind. The number of vehicles en route to the U.S. increased as the quarter ended.
According to the Bloomberg Billionaires Index, Tesla’s Chief Executive Officer (CEO) Musk has reduced assets by more than 6% in the past 24 hours and as of October 4, 2022, his net worth stood at $223 billion. The Bloomberg Billionaires Index is a daily ranking of the world’s richest people. Figures are updated at the end of every business day in New York.
Tesla delivered 343,830 vehicles to customers in the past three months, less than the roughly 358,000 vehicles expected by analysts compiled by Bloomberg. Tesla’s share price fell more than 8% on Monday, its biggest one-day drop since June 3. It was also the worst performer ever in the S&P 500 index, which recorded its best day since July.
“Historically, our delivery volumes have skewed at the end of each quarter due to regional batch manufacturing of cars. As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transport capacity and at a reasonable cost during these peak logistics weeks,” US-based Tesla said in a statement. Meanwhile, Musk said on Twitter that it is targeting stable delivery between quarters, adding that the customer experience suffers from quarter-end congestion.
Elon Musk is the chief executive officer of Tesla, which sells electric vehicles and home solar batteries. Musk is also the chief executive of SpaceX, a rocket maker that NASA had tapped to re-supply the space station, and has a stake in the social networking company Twitter.
According to an August 2022 regulatory filing, he owns about 15% of Tesla. He also owns about 9% of Twitter, a stake he began acquiring in February 2022. In April 2022, Twitter’s board agreed to support a proposal from Musk for the remainder of the company, which needs to be approved by shareholders. In July 2022, he sought to withdraw from the agreement.
(with inputs from Bloomberg)
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