Mark Zuckerberg’s financial standing took a significant hit as Meta Platforms Inc. shares nosedived, causing his net worth to plummet by a staggering $20 billion.
This downturn allowed Elon Musk of Tesla Inc. to reclaim his position as the world’s third-richest billionaire.
Based on reports by Bloomberg, the sharp decline in Meta’s shares, which dropped as much as 16% in New York, came after the social media giant announced lower-than-expected sales projections for the second quarter.
Zuckerberg’s wealth depletion on this single day ranks as the fourth-largest in recorded history concerning a stock-related move among billionaires tracked by the Bloomberg Billionaires Index. Consequently, his fortune now stands at $155 billion. Meanwhile, Elon Musk, aged 52, experienced a $400 million wealth increase, bringing his total net worth to $178 billion, thanks to Tesla’s stock rallying after recent earnings.
Earlier this month, Zuckerberg had briefly overtaken Musk in wealth for the first time since 2020, following reports of Tesla’s decline in vehicle deliveries for the first quarter. However, this reversal of fortunes underscores the volatility inherent in the stock market and the precarious nature of billionaires’ wealth.
The decline in Meta’s share value was primarily triggered by the company’s announcement of increased spending estimates for the year and lower-than-expected second-quarter sales projections. These developments raised concerns among investors about the long-term viability of Meta’s investments in artificial intelligence, despite the company’s continued optimism in this area.
Subsequently, Tesla’s stock witnessed a surge of 12% following Musk’s announcement of plans to introduce more affordable vehicles as early as this year. This move reassured investors who had been wary of disappointing earnings results and uncertain growth prospects. Musk’s wealth is primarily derived from his significant stake in Tesla, as well as his interests in Space Exploration Technologies and X (formerly known as Twitter). In contrast, Zuckerberg’s fortunes are closely tied to his holdings in Meta shares.
Beyond their financial rivalry, Musk and Zuckerberg have engaged in public disputes, notably over competing social media platforms. Meta’s launch of Threads, a direct competitor to Musk’s X, escalated tensions between the two billionaires.
Their exchanges, including playful challenges to a hypothetical cage fight, have underscored the rivalry between their respective companies and personal philosophies.