Tesla unveiled a prototype CyberCab at its “We, Robot” event in Los Angeles on Thursday. Tesla shares fell more than 9% on Friday, and Elon Musk’s net worth decreased. Although his net worth has decreased by about $15 billion, Mr. Musk remains the richest person in the world.
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Tesla’s Robotaxi event debuted the company’s long-awaited CyberCab and RoboVan prototypes, but they failed to impress many investors and Wall Street analysts. In the aftermath, the company’s stock price fell, and CEO Elon Musk’s net worth fell along with it.
Musk’s net worth is partially tied to Tesla, as he owns about 13% of the company’s stock, but it rises and falls depending on the value of the company. And on Friday, Tesla stock fell more than 9%, from $238.77 to $217.80 per share.
Musk’s net worth fell by $15 billion, according to the Bloomberg Billionaires Index, which was updated after the close of trading in New York. With a total net worth of $240 billion, Musk remains the richest person on the planet.
Forbes reported in July that Musk was facing a similar financial hit after the “We, Robot” event was postponed from its originally scheduled August date and Tesla stock fell about 7%. The company’s stock price continued to decline until early August, but recovered in September, and Musk’s net worth exceeded that of McDonald’s and Pepsi. However, Tesla stock has yet to return to its year-to-date highs reached in July, and the stock has fallen again this week.
Musk could control more than 20% of Tesla’s stock and increase his net worth if his huge payout overcomes ongoing legal issues.
Musk and Tesla representatives did not immediately respond to requests for comment from Business Insider.
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Business Insider reported that the “We, Robot” event left many Wall Street analysts with more questions than answers about Tesla’s robotaxi fleet. Analysts criticized the lack of details about the company’s plans for self-driving cars and expressed skepticism about the proposed timeline for widespread adoption of self-driving cars. That uncertainty, and the absence of the long-promised cheap Tesla, may have contributed to the stock’s decline.
“Leading into perhaps the most anticipated product launch in Tesla’s history, we had a lot of expectations about what the market would find out, and that may have affected the direction of the stock price and the discussion. “We felt it would have an impact,” Business Insider reported Morgan Stanley. Analyst Adam Jonas wrote in a note to clients Friday morning. “We were overall disappointed with the content and detail of the presentation.”
Musk said at the event that Tesla plans to roll out its autonomous CyberCab “by 2027,” but did not say when the 20-seat RoboVan would be available. The company also unveiled the latest prototype of its humanoid robot, Optimus. During the event, they danced, poured drinks, and took selfies.
Musk said the robot would be the “largest product of any kind ever.”
In a post on X after the event, Musk reposted a clip of Wedbush analyst Dan Ives and described Tesla as “the front and center of the Fourth Industrial Revolution.” He highlighted the recognition of Tesla investors who have been impressed by the company’s vision for the future of self-driving taxis.
