Elon Musk is always making headlines, and this week is no different.
Now, the world’s richest man has seen a major drop in his net worth after a setback at a recent event.
Tesla's We, Robot" event didn't go down as well as expected last Thursday.
Fans were been left disappointed and investors weren't left impressed either. But it was CEO Elon Musk whose ego and wallet were hurt the most.
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The tech billionaire was on track to become the world's first trillionaire by 2027. But now that Tesla’s stock took a significant dip, that goal could be shaken up.
The big reveal had the electric vehicle company debut the long-awaited prototypes for its Cybercab and Robovan.
Musk announced that the Cybercab, a self-driving electric vehicle, would be ready “before 2027,” he didn’t provide many specifics on when production would start.
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He also stated that the Cybercab would sell for less than $30,000.
Musk also announced plans to build an electric, self-driving Robovan that can transport up to 20 people or cargo. The South African claimed that it would 'solve for high density' such as when moving a sports team.
However, Morgan Stanley analysts were critical of the lack of clarity regarding Tesla’s self-driving tech progress, fault detection updates, and unconfirmed timelines for when these vehicles hit the market.
Morgan Stanley analysts, however, asserted that Musk did not adequately argue during the event that Tesla is an AI firm. The experts pointed out that Musk failed to address the rumoured partnership between Tesla and his artificial intelligence startup, xAI.
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They said the event 'disappointed expectations in several areas: a lack of data regarding rate-of-change on FSD/tech, ride-share economics, and go-to-market strategy.'
Tesla’s shares ended last Friday nearly 9% lower.
As a result, Tesla stock faced heavy selling pressure, causing Musk to lose a staggering $15 billion in a single day. This brings his net worth down to $240 billion at present.
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Musk holds around 13% of Tesla's stock and has roughly 304 million stock options from his 2018 compensation package. So it's no surprise that the stock dip had a huge impact on his wealth.
In addition to Tesla, Musk also has investments in companies like The Boring Company, a tunnel construction venture, and xAI, his artificial intelligence startup. He’s also the founder of SpaceX, which seems to have some ambitious plans down the line.
Tesla’s reputation is also affected by the controversies that have followed Musk over the years.
Recently, Musk sparked backlash with a post where he questioned why there haven’t been any clear attempts on the lives of President Joe Biden or Vice President Kamala Harris, while former President Donald Trump has faced two such incidents. Musk later removed the post.