Car company’s shares dropped by 14.2% and its billionaire CEO’s net worth reduced by $8.73bn
Tesla’s shares dropped by about 14.2% on Thursday at market close, wiping roughly $152bn off the value of the company as a feud between Elon Musk and Donald Trump erupted into public view. The former political allies traded threats and insults through posts on their respective social media platforms throughout the afternoon as the company’s price fell.
The decline in Tesla’s share price on Thursday knocked about $8.73bn off Musk’s total net worth, according to the Bloomberg Billionaires Index. The reported $152bn drop also decreased the value of the company to roughly $900bn.
Tesla has struggled throughout the year amid declining sales and buyers around the world rejecting the automaker due to Musk’s association with far-right politics. Stock traders who had shorted Tesla shares made billions amid the spat, per the Wall Street Journal.
It’s still up more than 20% above what it spent most of March and April at.
I want to find one of these people who just bought TSLA at $284 and ask them what possible basis do they have for thinking the company’s earnings will grow by the 6,000% that it needs to in order to start returning anything like the industry average.
Tesla could achieve phenomenal unexpected growth and increase their market share by a factor of ten and they’d still have a massively unsustainable PE ratio.
It’s a shitcoin fueled by hype. TSLA might as well be on Solana for all the legitimacy the company has.
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