The wealth of the world's richest person, Elon Musk, has decreased.

Elon Musk
(source:AP Photo/Matt Rourke)
The world's wealthiest person, Elon Musk, experienced a mind-boggling slide in wealth after his electric vehicle company, Tesla, suffered its biggest stock drop in three months.

According to Forbes, as of Friday, July 21, 2023, Elon Musk's net worth plummeted from USD 256.8 billion to USD 238.4 billion.

This surprising loss came as Tesla's stock tumbled nearly 10 percent in response to the company's second-quarter earnings report released after the market's close on Wednesday, July 19, 2023.

The drop in Tesla's stock wiped out USD 23 billion from CEO Elon Musk's fortune, leaving him with a mere USD 3 billion gap, threatening to knock him off his perch as the world's richest person, a position that Bernard Arnault, LVMH's boss, is vying for.

Bernard Arnault had been wealthier than Musk for approximately six months, from early December 2022 to June 2023.

During a conference with Tesla investors, Musk likened the massive swings in Tesla's stock to an analogy made by Warren Buffett in 2015. Buffett had stated that owning shares in a public company could sometimes feel like someone, "a depressed person," standing outside your house and shouting the property's value at you, with the price changing every day.

"It's like living in your house, and then somebody - a depressed guy comes and stands outside your house and shouts the property value to you, and it's different every day," Musk remarked.

"But the house is still the same house," he added.

Around 60 percent of Musk's net worth comes from owning approximately 13 percent of Tesla's shares, with another third from his stakes in the communication giant SpaceX, and less than 10 percent from his ownership in Twitter.

Tesla's two largest daily stock losses in the last six months occurred on the first trading session after the release of the company's only earnings report for 2023 (on Thursday, April 20).

Advertising Revenue Slumps, Elon Musk Complains About Twitter's Ongoing Negative Cash Flow.

Elon Musk
(source:AP Photo/Susan Walsh, File)
Elon Musk, the CEO of Tesla and SpaceX, who also serves as Twitter's CTO and executive chairman, mentioned that the social media company's cash flow was in a negative position.

Twitter's cash flow turned negative due to an almost 50 percent drop in advertising revenue and the burden of excessive debt.

"We need to achieve positive cash flow before we can indulge in other luxuries," Elon Musk wrote in a tweet quoted from CNBC on Sunday, July 16, 2023.

It's worth noting that Elon Musk acquired Twitter in a deal worth approximately USD 44 billion in October of the previous year, which also included around USD 13 billion in debt.

To finance the Twitter acquisition, he sold billions of dollars worth of Tesla stock.

In January of the same year, hundreds of advertisers had reduced or halted their ad spending on Twitter in response to layoffs conducted by Elon Musk at the company. The ad spending freeze was also attributed to the implementation of rule changes on the platform, particularly regarding the restoration of previously banned accounts and changes in content moderation.

In April, Elon Musk told BBC reporters that almost all advertisers had returned to spending money on Twitter. He also claimed at that time that the company had broken even and was expected to achieve positive cash flow in the following quarter.

The World's Richest Man Launches xAI Artificial Intelligence Startup

Billionaire and the world's richest individual, Elon Musk, once again captured the spotlight with the launch of his new startup called xAI, focused on Artificial Intelligence.

As reported by Channel News Asia on Thursday, July 12, 2023, the startup that delves into the field of AI will be led by Musk, who already serves as the CEO of the electric vehicle manufacturer Tesla, CEO of SpaceX, and owner of Twitter.

The xAI team of engineers includes Igor Babuschkin, a former engineer at Google's DeepMind, Tony Wu, who worked at Google, Christian Szegedy, also a research scientist at Google, and Greg Yang, who previously worked at Microsoft.

Dan Hendrycks, who will be an advisor to the xAI team, currently serves as the Director of AI Safety Center, and his work revolves around AI risk.

xAI has also revealed that it is actively recruiting experienced engineers and researchers in the San Francisco Bay Area, San Francisco, United States.

Before launching xAI, Musk had expressed concern multiple times that AI development should be halted temporarily and that the sector requires regulation.

In a Twitter Spaces event on Wednesday night, Musk explained his plan to build safer AI. "xAI will strive to create AI that fosters curiosity," said the billionaire.

"If trying to understand the true nature of the universe, that's actually the best thing I can get from the AI safety perspective," Musk added.

In March, Musk registered a company called X.AI Corp, established in Nevada, according to a filing document. The company listed Elon Musk as the sole director and Jared Birchall, the executive director of Musk's family office, as the secretary.

In April 2023, Musk stated that he would launch TruthGPT to rival Google's Bard and Microsoft's Bing AI in their quest to understand the nature of the universe.

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