Elon Musk Faces $100 Billion Loss as Tesla Shares Plunge, Stripping Trillion-Greenback Standing
Elon Musk, the world’s richest particular person, has seen his fortune take a major hit as Tesla’s inventory continues to slip, resulting in the lack of the corporate’s trillion-dollar valuation. Since mid-December, the 53-year-old CEO has seen his internet value drop by greater than $100 billion, with Tuesday’s (February 25) inventory fall exacerbating the decline. Tesla shares plummeted one other 8%, closing at $302.80, marking a 25% drop in worth to date this yr.
The downturn in Tesla’s inventory comes amidst troubling indicators for the electrical automobile (EV) big. Information reveals that automobile registrations in Europe have dropped by 45% in January in comparison with the identical interval final yr, regardless of an general enhance in EV gross sales on the continent. Gross sales figures in China additionally present indicators of a downward development, fueling considerations amongst traders.
Some analysts counsel that Tesla’s waning attraction in Europe could possibly be linked to Musk’s controversial ties to the Trump administration, which have strained relations between the U.S. and Europe. Others consider that traders are merely cashing out after Tesla’s important features over the previous yr, although the inventory has nonetheless risen by 52% within the final 12 months.
Gary Black, managing companion at The Future Fund funding group, warned that Tesla’s inventory might face additional declines this yr, citing uncertainties surrounding the corporate’s projected automobile deliveries for 2025.
Whereas Musk’s affect stretches far past Tesla, with management roles at SpaceX, X (previously Twitter), Neuralink, and AI firm xAI, his quite a few ventures haven’t shielded Tesla from challenges. Many traders have lengthy accepted Musk’s multitasking method, crediting his management for Tesla’s success. Nonetheless, latest occasions, such because the much-hyped “robotaxi” reveal in October, have left traders and analysts underwhelmed. The occasion, dubbed “I, Robotic,” failed to fulfill expectations, resulting in a 15% drop in Tesla’s inventory. Musk, who owns about 13% of the corporate, additionally noticed his internet value lower.
Along with market troubles, Tesla is going through a lawsuit from the manufacturing firm behind Blade Runner 2049 over the robotaxi design. Regardless of the setbacks, Musk stays centered on the long run, persevering with to roll out new Tesla fashions that cater to altering client preferences and increasing the corporate’s full self-driving know-how into China.
Gary Black stays optimistic, noting Tesla’s increasing product lineup and new, extra reasonably priced autos. “I consider this new type issue will broaden Tesla’s complete addressable market, and the promise of unsupervised autonomy will promote extra Teslas,” Black wrote on X.
Regardless of the challenges, Musk’s fortune remains to be substantial. As of now, his internet value stands at $379.9 billion, leaving him $144 billion forward of Meta CEO Mark Zuckerberg, the second-richest particular person on the planet.
