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Report: Elon Musk Loses $12 Billion in One Day

By    |   Friday, 21 April 2023 08:58 PM EDT

Elon Musk, one of the world's richest men, had a tumultuous Thursday resulting in a financial loss of more than $12 billion due to falling Tesla sales, a SpaceX rocket explosion, and backlash for starting to remove blue verified check marks on Twitter.

The India Times reported Friday that Musk suffered a nearly $13 billion loss from Wednesday's events alone, the largest drop in his net worth this year.

The report cited three reasons from separate events on Wednesday for the financial nosedive.

First, the report said that shares in the electrical car making company Tesla dropped 9.75% on Thursday following Wednesday's first quarter earnings report showing a 20% net income drop at the company.

CNBC reported Wednesday Tesla reported a drop in income of 24%, or to $2.51 billion during the first quarter of 2023, down from last year's $3.32 billion during the same period.

The announcement caused shares to slide 4% on Wednesday, and more than 5% on Thursday, a total of almost 10%.

"Every time that the Fed raises interest rates, that's equivalent to an increase in the price of a car," CNBC reported Musk saying on the earnings call.

Second, Musk's massive SpaceX Starship rocket exploded during a test launch in Texas roughly four minutes into its flight, according to the India Times.

The Starship rocket designed by Musk's company SpaceX cleared the Texas launch pad, but then exploded after rising about 25 miles, and crashed into the Gulf of Mexico, Reuters reported.

The mission was suppose to continue climbing to around 90 miles before plunging into the Pacific Ocean around Hawaii.

Musk celebrated getting the rocket off the ground, despite the explosion and financial loss the rocket's destruction brought about.

"Such a great day in so many ways," Musk posted on Twitter.

Third, Musk began removing the coveted blue check marks from accounts on Twitter that refused to pay $8 per month, the India Times reported.

Musk, who bought the social media company in the fall for $44 billion, warned users on the platform that the check marks would begin coming down April 20.

"Tomorrow, 4/20, we are removing legacy verified checkmarks. To remain verified on Twitter, individuals can sign up for Twitter Blue here:" the company posted Thursday afternoon.

A number of celebrities struck out on Twitter regarding the move, including NBA star LeBron James, according to The New York Times.

"Welp guess my blue ✔ will be gone soon cause if you know me I ain't paying," the Times reported James tweeting out last month.

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Elon Musk, one of the world's richest men, had a tumultuous Thursday resulting in a financial loss of more than $12 billion due to falling Tesla sales, a SpaceX rocket explosion, and backlash for starting to remove blue verified check marks on Twitter. The India Times ...
musk, twitter, spacex, tesla, money, business
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2023-58-21
Friday, 21 April 2023 08:58 PM
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