Musk's wealth decreases by $15billion after Tesla's 'We, Robot' event

Elon Musk recently hosted the annual Tesla 'We, Robot' event, where he showcased several visually striking prototype Tesla robots. This included the much-anticipated prototypes for the Cybercab and Robovan. The demonstrations intrigued many attendees, who were generally impressed by the innovations on display. However, despite the interest generated by the event, Tesla’s presentations did not seem to resonate with shareholders or those in the financial sector. Following the 'We, Robot' event, Tesla’s share prices took a downturn, as did Musk’s personal wealth.

On the Friday after the event, Tesla’s shares fell by over 9%, dropping from $238.77 to $217.80 per share. Since Musk owns 13% of Tesla’s stock, his net worth is directly tied to the company’s market valuation. As a result of this dip in share prices, Musk’s wealth decreased by $15 billion. Nevertheless, he remains the wealthiest person in the world, with a total net worth of $240 billion.

The primary reason for the stock decline was analysts’ scepticism regarding Tesla’s plans for its robotaxi fleet. Many felt that insufficient details were provided about the fleet, and there were concerns about the feasibility of the promised timelines for their mass release. Additionally, Musk had previously promised the introduction of more affordable Tesla models, but little progress on this front has been seen, leaving some stakeholders disappointed. This, too, may have contributed to the stock’s decline.

This is not the first instance of such a market reaction. A few months ago, in July, Musk’s net worth dropped after the 'We, Robot' event was delayed—it had originally been scheduled for August. At that time, Tesla’s shares fell by 7%, continuing to decline in August before showing slight recovery in September. Despite these fluctuations, Musk’s wealth remains greater than the market capitalisation of companies like McDonald's and Pepsi.