Tesla Stock Plummets, Drags Elon Musk's Wealth Below $200 Billion

On Thursday, shares of Tesla, Inc. (TSLA) experienced a sharp drop as investors began selling off their stakes in the company. The selloff was prompted by growing uncertainties regarding the electric vehicle manufacturer's future performance and direction.

Impact on Elon Musk's Net Worth

Consequent to the drop in Tesla's share price, CEO Elon Musk's net worth suffered a significant loss. According to Bloomberg's Billionaires Index, Musk's wealth decreased by approximately $18 billion, an 8.3% loss, bringing it down to $198 billion. This marks the first time since late October that Musk's net worth has dipped below the $200 billion threshold.

Underlying Reasons for the Decline

The immediate reason behind the nosedive of Musk's wealth was rooted in Tesla's quarterly financials, which did not meet Wall Street's expectations. Furthermore, the company's forecast suggested a marked reduction in volume growth for 2024, causing investors to worry. During the earnings discussion, Musk and his management team focused on long-term initiatives aimed at boosting revenue and margins but failed to deliver a persuasive near-term business outlook.

Musk continues to lead the billionaire ranks globally, in spite of the recent downturn in his fortunes. Jeff Bezos trails behind Musk, with a fortune of $183 billion as of the last trade on Thursday.

Musk's Holdings and Future Ambitions

A significant chunk of Musk's fortune is tied to his stake in Tesla, supplemented by investments in SpaceX, Starlink, The Boring Company, and a recently acquired social media platform. Owning 411,062,076 shares of Tesla means he holds almost 13% of the firm. Additionally, exercising vested options could raise his stake to over 20%.

Musk has vocalized his ambition to consolidate control over Tesla, with aspirations of turning the company into an AI and robotics leader. Lately, he has been advocating for a 25% voting influence to stave off potential proxy advisory firm takeovers, which he believes could derail Tesla's tech trajectory.

Jeff Bezos and Amazon

The majority of Jeff Bezos' wealth emanates from his stake in Amazon. With the e-commerce juggernaut about to release its quarterly figures, a positive report could send Amazon's stock upwards and augment Bezos' net worth in the process.

Outlook for Tesla's Stock

Given the company's transition to a period of slower growth and the obstacles it faces strategically and fundamentally, Tesla's stock could remain volatile in the short to mid-term. After the trading day came to an end on Thursday, Tesla's stock closed down 12.13% at $182.63.

Tesla, ElonMusk, StockFall