Elon Musk’s net worth dropped by $18.6 billion on July 23 after Tesla shares dropped by 14%, marking its largest single-day decline since June 5, 2025. According to Forbes Billionaires List, the drop in Tesla stock lowered Elon Musk’s net worth to $731.7 billion. Despite the fall, he remains the world’s richest person ahead of Google co-founder Larry Page ($263.8 billion) and Amazon’s Jeff Bezos ($245.4 billion). The drop comes days after Musk said “I can’t pass a TV without spotting a Tesla up in flames.” He was then talking about the widespread protests at Tesla showrooms and vandalism of the vehicles.
Why Elon Musk lost $18.6 billion in a single day
Tesla shares plunged after the company reported quarterly results that missed profit expectations despite beating revenue estimates. The car maker posted revenue of $28.2 billion, above analysts’ estimate of $27.2 billion, according to FactSet. However, earnings came in at 33 cents per share, well below the expected 55 cents per share.As per a Forbes article, the weak profit numbers, combined with Tesla’s plans to continue spending heavily on AI, weighed on investor sentiment.
Tesla plans to spend more on AI
During the earnings call, Tesla Chief Financial Officer Vaibhav Taneja said the company still expects to spend $25 billion this year, with even higher investments planned in the coming years. The spending is aimed at supporting Tesla’s AI ambitions, including its Optimus humanoid robot and robotaxi business.However, analysts said investors now want to see clear progress rather than promises.Morgan Stanley analysts said the spending is a “necessary investment” but added that Tesla must deliver “tangible” milestones for its robotaxi and Optimus projects.Canaccord Genuity analysts also said they expect meaningful robotaxi deployments over the next six months as Tesla expands its AI strategy.
Elon Musk avoids merger speculation
During the earnings call, Elon Musk was also asked about speculation surrounding a possible merger between Tesla and SpaceX. The tech billionaire declined to comment on combining the two companies, saying such discussions cannot happen during an earnings call. However, Musk acknowledged there is “more and more overlap” between the businesses, pointing to Starlink connectivity in Cybertrucks and the proposed TeraFab AI chip manufacturing venture involving Tesla and SpaceX.
