Elon Musk just took a massive financial hit—his net worth dropped by over $17 billion in a single day. Why? Tesla’s stock plunged more than 9% on Thursday, following a gloomy earnings report and a warning from Musk himself that the company could face a few “rough quarters” ahead.
What Happened?
Tesla’s second-quarter report revealed the biggest revenue drop in over a decade, including a $600 million dip from lost regulatory credit revenue. Investors didn’t take the news well, sending Tesla shares below $302—their lowest point in recent months.
The decline slashed the value of Musk’s 12% stake in Tesla, dropping it from $136.3 billion to $123.7 billion—a $12.6 billion loss. His bonus equity also took a hit, down another $5 billion.
The Policy Behind the Plunge
Part of the reason? Federal EV tax credits are set to expire after September 30, thanks to a new policy signed by President Trump. These credits gave buyers up to $7,500 off new electric vehicles—a major selling point. Without them, Tesla could lose its price edge.
Musk commented on the issue during Tesla’s earnings call, admitting the company might face some turbulence. But he also added:
“I’d be surprised if Tesla’s economics aren’t very compelling by the end of next year.”
Analyst Reactions
- Piper Sandler estimates Tesla got $3.5 billion in “free money” from EV credits in 2024. They expect only a modest dip in revenue for 2025 and 2026.
- Wedbush’s Dan Ives called the loss of credits a “headwind” for Tesla and its rivals.
Musk’s Current Net Worth
As of Thursday afternoon, Elon Musk’s fortune stands at about $397.3 billion—still massive, but down more than 4% in a single day.
What’s Next for Tesla?
Musk is still betting big on tech. He announced that Tesla aims to launch a fully autonomous ride-hailing service in half of the U.S. by the end of 2025, pending government approvals.
But with political pressure, financial hurdles, and growing investor concerns over Musk’s public statements and political ties, Tesla’s road ahead may not be as smooth as investors once hoped.
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