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Elon Musk’s Net Worth Down by $12.6B After Starship Explosion

Elon Musk‘s net worth has plummeted by $12.6 billion after a chaotic week at Twitter, Tesla, and SpaceX.

As of April 23, 2023, Bloomberg estimates Elon Musk’s net worth at $165 billion. 

Nonetheless, even after the decline in net worth, Musk still holds the world’s second-wealthiest individual position next to Bernard Arnault.

Elon Musk’s Net Worth Declined by $12.6B

Elon Musk’s net worth plummeted by $12.6 billion as he fulfilled his promise in a tweet that he would eliminate blue checkmarks from older accounts on Thursday.

As a result, Twitter’s verification badges were appearing and disappearing unpredictably with Twitter’s well-known technical glitches, until they ultimately vanished utterly. 

In the past, Musk criticized the “lords & peasants system” of verification, which favored certain accounts over others. Instead, Twitter’s CEO has now introduced a new verification system, requiring users to subscribe to Twitter Blue for $8 per month.

As a result, media outlets and advertisers are anxiously monitoring the situation, as they worry that removing older verified checkmarks might contribute to spreading false information.

Meanwhile, The Verge reported that Tesla announced disappointing financial results for the first quarter last Thursday, revealing a drop of almost 20 percent in the company’s gross margins. 

The electric vehicle manufacturer had aggressively cut prices for its vehicle lineup in recent months, resulting in increased sales but at the expense of overall profit margins.

 Tesla’s share price fell by 9.8 percent to $162.99 at the close of the markets on Thursday. Elon Musk’s 13 percent stake in Tesla represents the largest portion of his current net worth of $163.9 billion.

Elon Musk's net worth
SAN FRANCISCO, CALIFORNIA – JANUARY 24: Tesla CEO Elon Musk leaves the Phillip Burton Federal Building on January 24, 2023 in San Francisco, California. Musk testified at a trial regarding a lawsuit that has investors suing Tesla and Musk over his August 2018 tweets saying he was taking Tesla private with funding that he had secured. The tweet was found to be false and cost shareholders billions of dollars when Tesla’s stock price began to fluctuate wildly allegedly based on the tweet. (Photo by Justin Sullivan/Getty Images)

Meanwhile, on the same day, SpaceX’s integrated Starship spacecraft suffered a malfunction during its first test flight, resulting in what is being described as a “rapid unscheduled disassembly” or explosion over the Gulf of Mexico just four minutes into the flight. 

Musk, who has a 42 percent stake in SpaceX, is planning to attempt another test flight of the Starship spacecraft in a few months.

These incidents, which happened in just 24 hours, affected Elon Musk’s net worth.

How Elon Musk Reacts

The Tesla’s CEO commented regarding the comany’s underperformance, as WIONews reported, stating that predicting profit margins is challenging, which affected Elon Musk’s net worth. 

However, he expressed optimism about the progress of SpaceX’s Starship program despite the recent setback, and many have noted his ability to turn setbacks into learning opportunities. 

On Twitter, Musk kept his promise to eliminate older blue checkmarks, which has caused some disruption in the virtual community. 

He also made a lighthearted comment on April 20, referencing the unofficial pot holiday, stating that the day is shaping up to be quite eventful and affected Elon Musk’s net worth.

READ ALSO: How to Buy Shares of SpaceX in 2023: What You Need to Know

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