A sharp decline in Meta Platforms’ shares led to a staggering $18 billion drop in Mark Zuckerberg’s fortune. This downturn enabled Elon Musk of Tesla to secure his status as the third-wealthiest individual globally. Meta’s shares plunged by 11 percent in New York on Thursday, prompted by the company’s forecast of second-quarter sales falling short of expectations. This abrupt decline in Zuckerberg’s net worth marks the 11th largest single-day drop ever registered in the Bloomberg Billionaires Index, leaving his fortune at $157 billion.
Meanwhile, Elon Musk, aged 52, saw his wealth grow by $5.8 billion to reach $184 billion, thanks to a continued surge in Tesla stock following its earnings report.
Earlier this month, Zuckerberg, aged 39, surpassed Musk in wealth for the first time since 2020, fuelled by news of a decline in Tesla’s vehicle deliveries in the first quarter. However, the tide turned as Meta’s stock stumbled.
Shares of Meta, headquartered in Menlo Park, California, experienced their sharpest decline since October 2022 on Thursday, as the company revised its spending projections for the year and forecasted second-quarter sales below Wall Street’s expectations. This raised concerns yet again about the profitability of its investments in artificial intelligence. Despite the setback, Meta’s stock remains up by 25 percent for the year, trading near record highs, reflecting optimism surrounding AI.
Conversely, Tesla, based in Austin, witnessed a surge of 12 percent on Wednesday and an additional 5 percent on Thursday, following Musk’s pledge to introduce more affordable vehicles as early as this year. This announcement alleviated worries about disappointing earnings and sluggish growth. Prior to the rally, Tesla’s stock had been the poorest performer on the S&P 500 Index, having dropped by 42 percent until Tuesday’s close.
Musk’s wealth is primarily derived from his stake in the electric vehicle manufacturer, as well as his interests in Space Exploration Technologies and X (formerly known as Twitter), while Zuckerberg’s fortune is largely tied to Meta shares.
Beyond their financial rivalry, Musk and Zuckerberg have been embroiled in a public feud, which escalated when Meta introduced Threads, a social media platform directly competing with Musk’s X. The rivalry even included jabs about a potential cage fight last year.