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AP Photo/Alex Brandon
- Tesla introduced its prototype Cybercab at the ”We, Robot” event held in Los Angeles.
- The company’s stock plummeted over 9% on Friday, impacting Elon Musk’s wealth.
- Despite a $15 billion drop in his net worth, Musk retains his title as the world’s richest individual.
The recent robotaxi showcase by Tesla, where they unveiled the eagerly awaited prototypes for their Cybercab and Robovan, did not meet the expectations of many investors and analysts on Wall Street. Consequently, Tesla’s stock experienced a significant decline following this event—along with CEO Elon Musk’s financial standing.
Musk’s fortune is closely linked to Tesla since he owns approximately 13% of its shares. On Friday alone, Tesla’s share price fell from $238.77 to $217.80—a decrease exceeding 9%.
As per the latest updates from the
Bloomberg Billionaires Index, which was refreshed after New York trading hours concluded, Musk saw his net worth diminish by $15 billion. Nevertheless, with an estimated total wealth of $240 billion, he continues to be recognized as the richest person globally.
A report from
Forbes indicated that back in July, Musk faced similar financial repercussions when there was a delay for the “We, Robot” event originally scheduled for August; during that time period alone, Tesla shares dropped around 7%. Following this downturn through early August and subsequent recovery in September—Musk’s net worth surpassed that of major corporations like McDonald’s and Pepsi. However, despite these fluctuations throughout July leading up to this week’s slump again—the stock has yet to regain its peak value reached earlier this year.
If his substantial compensation package withstands ongoing legal scrutiny—Musk could control over 20% of Tesla shares which may further enhance his financial portfolio.
Neither Elon Musk nor representatives from Tesla provided immediate comments when approached by Business Insider regarding these developments.
Business Insider noted that many analysts left the “We, Robot” presentation with more uncertainties than clarifications concerning Tesla’s robotaxi initiative. Critics pointed out insufficient details about self-driving vehicle strategies and expressed doubts about proposed timelines for their broader deployment. This ambiguity along with unmet expectations regarding an anticipated lower-cost model might have contributed significantly to falling stock prices.
“Heading into what could arguably be considered one of the most awaited product unveilings in Tesla’s history—we had several anticipations regarding what insights we might gain that would influence market sentiment,” stated Morgan Stanley analyst Adam Jonas in a note sent out to clients on Friday morning. “Overall we found ourselves disappointed by both substance and detail presented during this session.”
Diving deeper into specifics shared at the event—Musk announced plans for launching autonomous Cybercabs “before 2027” but refrained from providing any timeline concerning Robovan availability—which is designed to accommodate up to twenty passengers. Additionally showcased were new prototypes of humanoid Optimus robots performing tasks such as dancing or pouring drinks while engaging attendees through selfies during demonstrations.
Musk emphasized that these robots are poised to become “the largest product ever created across any industry.”
In follow-up posts on X after concluding remarks at this gathering—Musk underscored positive feedback received from investors who appreciated Teslas’ forward-looking vision surrounding autonomous taxi services; including sharing a
video clip featuring Wedbush analyst Dan Ives praising how pivotal he believesTesla stands within what he termed “the Fourth Industrial Revolution.”
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