No time to read? Just listen to the news!
TL;DR:
- Elon Musk’s net worth dropped by $15 billion after Tesla’s robotaxi event failed to impress investors, causing a 9% stock price decline.
- Tesla’s stock fell from $238.77 to $217.80 per share following the underwhelming presentation of Cybercab and Robovan prototypes.
- Despite the setback, Musk remains the world’s richest person with a net worth of $240 billion, according to the Bloomberg Billionaires Index.
- Analysts expressed disappointment in the lack of detailed information about Tesla’s autonomous vehicle technology and deployment timeline during the event.
Tesla CEO Elon Musk, currently the world’s richest man, saw his net worth drop by a staggering $15 billion (approximately Rs 124,500 crore) after the company’s highly anticipated robotaxi event failed to impress investors and analysts. The event, held on Thursday, October 10, 2024, showcased prototypes of Tesla’s Cybercab and Robovan, two key components of its upcoming robotaxi fleet. However, the presentation fell short of expectations, leading to a significant 9% decline in Tesla’s stock price, from $238.77 to $217.80 per share.
Musk’s net worth, which is closely tied to Tesla’s stock value due to his 13% ownership in the company, took a substantial hit following the event. According to the Bloomberg Billionaires Index, Musk’s wealth decreased by $15 billion, leaving him with a total net worth of $240 billion. Despite this setback, Musk maintains his position as the wealthiest person in the world.
This is not the first time Musk has experienced a significant financial loss due to fluctuations in Tesla’s stock price. In July, when the company postponed its “We, Robot” event, shares fell by approximately 7%. However, the stock rebounded in September, restoring Musk’s net worth to levels surpassing major corporations such as McDonald’s and Pepsi.
The robotaxi event was viewed as a pivotal moment for Tesla, with investors and analysts eagerly awaiting details about the company’s autonomous vehicle technology and plans for widespread deployment. However, many expressed disappointment in the lack of concrete information provided during the presentation. Adam Jonas, an analyst at Morgan Stanley, noted that the event left many questions unanswered and failed to deliver the substance and detail investors had hoped for, likely contributing to the stock’s decline.
During the event, Musk announced that Tesla aims to launch its autonomous Cybercabs “before 2027,” but did not provide a specific timeline for the release of the Robovan, which is designed to accommodate up to 20 passengers. The company also showcased the latest prototypes of its humanoid Optimus robots, demonstrating their abilities to dance, pour drinks, and pose for selfies. Musk described these robots as potentially “the biggest product ever, of any kind.”
Despite the criticism surrounding the event, Musk took to social media to highlight positive feedback from some Tesla investors regarding the company’s vision for the future of autonomous taxis. He shared a clip featuring Wedbush analyst Dan Ives, who praised Tesla’s role in the ongoing technological revolution.
While the robotaxi event was expected to be a defining moment for Tesla, it ultimately fell short of the excitement and clarity investors were seeking. The lack of detailed information and concrete timelines led to a significant drop in the company’s stock price, directly impacting Musk’s personal wealth. As Tesla continues to navigate the challenges of developing and deploying autonomous vehicle technology, investors and analysts will closely monitor the company’s progress and Musk’s ability to deliver on his ambitious promises.
Source: DNA India
