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Tesla Stock Has Tanked So Hard That It's No Longer Elon Musk's Biggest Asset—'You Should Not Have To Live Through That'

Tesla Stock Has Tanked So Hard That It's No Longer Elon Musk's Biggest Asset—'You Should Not Have To Live Through That'

  • 23.03.2025 12:14
  • benzinga.com
  • Keywords: Stock Collapse, Market Value Drop

Tesla's stock has plummeted, erasing $800 billion in market value and reducing Musk's net worth by $100 billion. Executives are selling shares, while SpaceX becomes Musk's top asset. Political backlash and vandalism have intensified Tesla's struggles.

Tesla NewsTSLAsentiment_dissatisfied

Estimated market influence

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

The article discusses Tesla's stock collapse and the resulting loss of market value. It mentions that Tesla has lost $800 billion in market value and Elon Musk's net worth has dropped by about $100 billion.

SpaceX

Positivesentiment_satisfied
Analyst rating: N/A

While Tesla is struggling, SpaceX is thriving with a 51% revenue increase to $13.1 billion in 2024. Elon Musk's stake in SpaceX is now his largest asset at $147 billion.

DOGE

Neutralsentiment_neutral
Analyst rating: N/A

Mentioned as one of Elon Musk's ventures, but no specific impact or role beyond that mention.

Context

Analysis of Tesla Stock Collapse and Market Implications

Overview

  • Tesla's Stock Drop: Tesla's stock has plummeted, resulting in a $800 billion loss in market value. This decline has also reduced Elon Musk's net worth by approximately $100 billion, though he remains the world's richest person with an estimated fortune of $329 billion.

Key Facts and Data Points

  • Stock Performance:

    • Tesla's stock collapse began in early January after its Q4 2024 earnings report.
    • The decline accelerated when Musk took over the Department of Government Efficiency under President Donald Trump, raising concerns about his ability to manage multiple roles effectively.

  • Wall Street Reaction:

    • Short sellers have profited $16 billion betting against Tesla in the last three months.
    • Analysts have downgraded global delivery forecasts to the lowest levels since 2022.

Executive Stock Sales

  • James Murdoch (Rupert Murdoch’s son and board member): Sold $13 million in shares on March 10, coinciding with Tesla's worst single-day decline in five years.
  • Robyn Denholm (Chair): Offloaded $75 million in shares over the past five weeks.
  • Kimbal Musk (Elon Musk's brother and board member): Sold 75,000 shares valued at $27 million.
  • Vaibhav Taneja (CFO): Sold over $5 million in shares in recent weeks.

Musk's New Top Asset

  • SpaceX: Musk's 42% stake in SpaceX is now worth $147 billion, surpassing his Tesla holdings valued at $127 billion.
  • SpaceX Performance: The company reported a 51% revenue increase to $13.1 billion in 2024, driven by the success of its Starship program.

Political and Public Backlash

  • Political Controversy: Musk's close ties to Trump have sparked backlash across the U.S., with critics accusing him of enabling political extremism.
  • Customer Exodus: Some liberal Tesla customers have abandoned the brand due to political concerns.
  • Vandalism and Violence: Tesla has faced attacks, including vandalism and violent incidents attributed to left-wing extremists. Musk described the situation as "shocking" and called for action against the perpetrators.

Competitive Dynamics

  • Short Seller Profits: Short sellers have made significant gains betting against Tesla, indicating a bearish market sentiment.
  • Analyst Downgrades: Delivery forecasts have been downgraded to their lowest levels since 2022, reflecting investor skepticism.

Long-Term Effects and Regulatory Implications

  • Regulatory Focus: Trump has vowed to classify attacks on Tesla as domestic terrorism, signaling potential regulatory action against political violence.
  • Musk's Balancing Act: Musk has admitted struggling to manage multiple ventures, including Tesla, SpaceX, DOGE, and others.

Strategic Considerations

  • Optimism Despite Challenges: Despite Tesla's current struggles, Musk remains optimistic about the company's long-term future, assuring followers that Tesla will "be fine long-term."

This analysis highlights the significant market implications of Tesla's stock collapse, including executive sell-offs, shifting investor sentiment, and the broader political and regulatory challenges facing the company.