Elon Musk Overtakes Zuckerberg as Third-Richest Billionaire
Mark Zuckerberg, the owner of Facebook, witnessed a sharp decline in his fortune as shares of Meta Platforms, formerly known as Facebook, took a tumble. This decline allowed Tesla’s CEO, Elon Musk, to solidify his position as the world’s third-richest billionaire.
On Thursday, Meta shares fell by 11 percent in New York after the social media company announced that its second-quarter sales were expected to fall below estimates. As a result, Zuckerberg’s net worth experienced an immediate drop of US$18 billion. This decline ranks as the 11th largest ever related to a stock move among individuals listed in the Bloomberg Billionaires Index. With this decline, Zuckerberg’s fortune now stands at approximately US$157 billion.
Meanwhile, Elon Musk’s wealth continued to rise as Tesla’s stock maintained its post-earnings rally. The 52-year-old entrepreneur added US$5.8 billion to his net worth, reaching a total of US$184 billion. This surge in wealth allowed Musk to surpass Zuckerberg and reclaim his position as the world’s third-richest billionaire, a rank he had temporarily lost earlier this month.
The decline in Meta shares was primarily driven by the company’s announcement of increased spending estimates for the year and lower-than-expected second-quarter sales projections. These developments have raised concerns among investors about the potential payoff of Meta’s investments in artificial intelligence and its ability to deliver satisfactory returns.
Nevertheless, Meta’s stock is still up by 25 percent for the year and has been trading near all-time highs for the past month, reflecting the market’s enthusiasm for artificial intelligence. On the other hand, Tesla’s shares experienced significant gains, surging 12 percent on Wednesday and an additional 5 percent on Thursday. This rally was fueled by Musk’s commitment to offer more affordable vehicles in the near future, which alleviated concerns about the company’s earnings and growth prospects. Prior to this rally, Tesla’s stock had experienced a 42 percent decline, making it the worst-performing stock on the S&P 500 Index.
It’s worth noting that Musk’s wealth primarily stems from his stake in Tesla, as well as his holdings in Space Exploration Technologies and X (formerly known as Twitter). In contrast, Zuckerberg’s fortune is closely tied to Meta shares, highlighting the vulnerability of his wealth to the performance of the company.
Beyond their financial standings, Musk and Zuckerberg have engaged in a public rivalry that extends to their respective companies. This rivalry intensified when Meta launched Threads, a social media platform that directly competes with Musk’s X. The two billionaires even exchanged playful taunts last year about the possibility of a cage fight.
