Elon Musk, the CEO of Tesla, has regained the title of the world’s richest man, surpassing Mark Zuckerberg, CEO of Meta, after a sharp decline in Meta’s market value impacted Zuckerberg’s net worth. Despite Meta, the parent company of Facebook, reporting better-than-expected profits for the first quarter, it experienced a substantial market capitalization loss of $132.2 billion, as noted by Quartz.
This decline was primarily due to investor worries about Meta’s investments in AI and modest revenue projections for the second quarter, causing its market value to drop to $1.11 trillion during regular trading on Friday.
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According to Bloomberg’s Billionaire Index, as of Thursday, Musk’s net worth was at $184 billion, while Zuckerberg’s had decreased from an estimated $175 billion the previous week to $157 billion.
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This change in fortunes for Musk came shortly after Tesla reported a surprising 9% decline in year-over-year revenue growth, marking its largest drop since 2012. However, Musk’s reassurance about Tesla’s strategy to launch more affordable electric vehicles seemed to stabilize investor sentiment.
On the other hand, Meta’s financial update showed a 30% increase in revenue year-over-year but did not reassure investors. Following the earnings announcement, Meta’s stock fell by 12%, with concerns centered on the company’s AI initiatives and a less optimistic revenue outlook of $36.5 billion to $39 billion for the upcoming quarter.
