Following Tesla’s “We, Robot” event in Los Angeles on Thursday, where the company unveiled its prototype Cybercab, CEO Elon Musk experienced a significant reduction in his net worth. The electric vehicle manufacturer’s stock price declined by over 9% on Friday, dropping from $238.77 to $217.80 per share.
This market reaction resulted in a decrease of approximately $15 billion in Musk’s personal wealth, as reported by the Bloomberg Billionaires Index after the New York stock market closed. Despite this substantial loss, Musk maintains his position as the world’s wealthiest individual, with a total net worth of $240 billion.
The “We, Robot” event, which had been previously postponed from its original August date, showcased Tesla’s vision for autonomous transportation. Musk announced plans to introduce the self-driving Cybercabs “before 2027” but did not provide a specific timeline for the launch of the Robovan, a larger vehicle designed to accommodate 20 passengers.
In addition to the robotaxi prototypes, Tesla presented the latest versions of its Optimus humanoid robots. These machines demonstrated various capabilities, including dancing, pouring drinks, and taking selfies during the event. Musk expressed his belief that these robots would become “the biggest product ever, of any kind.”
However, the presentation left many Wall Street analysts and investors with more questions than answers regarding Tesla’s autonomous vehicle strategy. Critics pointed out the lack of detailed information about the company’s plans for self-driving technology and expressed skepticism about the proposed timelines for widespread deployment.
Morgan Stanley analyst Adam Jonas noted in a client communication that the event fell short of expectations, particularly in terms of providing substantive details that could influence the ongoing debate surrounding Tesla’s stock. The absence of information about the long-anticipated, more affordable Tesla model may have also
contributed to the stock’s decline.
Musk’s net worth is closely tied to Tesla’s stock performance, as he holds approximately 13% of the company’s shares. This connection means that fluctuations in Tesla’s stock price directly impact his personal wealth. Should Musk’s substantial pay package survive ongoing legal challenges, his control over Tesla shares could increase to more than 20%, potentially leading to even greater swings in his net worth based on the company’s market performance.
Following the event, Musk took to social media platform X to highlight positive reviews from Tesla investors who were impressed by the company’s vision for autonomous taxis. He shared a clip featuring Wedbush analyst Dan Ives, who described Tesla as being “front and center of the 4th Industrial Revolution.”
This recent decline in Musk’s net worth is not unprecedented. A similar situation occurred in July when the initial postponement of the “We, Robot” event caused Tesla’s stock to fall by approximately 7%. Although the company’s stock value had rebounded in September, bringing Musk’s net worth to surpass that of major corporations like McDonald’s and Pepsi, it had not fully recovered to the year-to-date high achieved in July before this latest setback.
As Tesla continues to push the boundaries of autonomous technology and robotics, the market’s response to these innovations remains a significant factor in both the company’s valuation and Musk’s personal fortune. The coming years will likely see continued scrutiny of Tesla’s progress in bringing its ambitious visions for self-driving vehicles and advanced robotics to fruition.