What's the matter with Tesla?
Flagging global sales and Elon Musk’s increasingly outspoken political activities are combining to rock the value of Tesla.
Flagging global sales and Elon Musk’s increasingly outspoken political activities are combining to rock the value of Tesla.
Shares in the once-trillion-dollar company saw their worst day in five years this week. Year to date, Tesla’s stock has plunged 36% — though it is still up by some 54% over the past 12 months.
For Musk, Tesla’s shares remain his primary source of paper wealth, though he has also turned his stake in SpaceX into a personal lending tool. But it was proceeds from selling Tesla shares that helped Musk complete his acquisition of Twitter, now known as X.
Musk’s wealth also allowed him to help vault Donald Trump into a second presidential term. Even as Musk’s net worth has diminished as a result of Tesla’s recent share-price declines, data suggests he is in no danger of losing his title as the world’s wealthiest person.
Musk has said on X that he is not concerned about Tesla’s recent drop in value. Still, evidence suggests the company is entering a period of transition.
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