Elon Musk just took a major hit to his wealth, losing $15 billion after announcing Tesla’s first-ever robotaxi, the Cybercab. Here’s what happened and how it affects his standing as the world’s richest person.
Musk’s Net Worth Takes a Dive
Following the unveiling of the Cybercab at the We, Robot event on October 10, Musk’s net worth dropped to around $240 billion. He owns about 13% of Tesla, and the news led to a decline in Tesla’s stock price—from about $240 per share to $217 by Friday, marking nearly a 10% decrease. As of Tuesday afternoon, the stock had rebounded slightly to $220.
What Did Musk Announce?
During the event, Musk revealed that the Cybercab is expected to launch before 2027 and will cost around $30,000. He acknowledged his tendency to be “a little optimistic with timeframes.” The event also showcased a new autonomous vehicle called the Robovan and several of Tesla’s humanoid Optimus robots, though the robots were controlled remotely from offsite.
Reactions from Analysts
While some analysts, like Dan Ives from Wedbush, praised the announcement, others were more skeptical. Analysts from Wells Fargo, led by Colin Langan, noted that the event generated excitement but lacked substance. They pointed out that the Cybercab demonstrations were conducted in a controlled environment, making it hard to gauge its real-world performance. In contrast, competitors like Waymo are already conducting 100,000 autonomous rides weekly in major cities.
Langan remarked, “The presentation lacked many of the details people were looking for,” criticizing the short demos and the simplistic environment they were conducted in.
Musk Remains the Richest
Despite the drop in net worth, Musk retains his title as the world’s richest person, surpassing Amazon founder Jeff Bezos by over $30 billion. As of Tuesday, Musk’s net worth stood at $241 billion, while Meta CEO Mark Zuckerberg briefly surpassed Bezos earlier this month but is now in third place with $209 billion.
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