Elon Musk is the richest man on earth, for now.
However, his bank balance got a horrible fright this Halloween.
In just five hours of trading, Tesla’s stock decreased by 5%.
Which counts as $7 billion of Musk’s wealth.
Experts have weighed in on why this happened and whether he will recover.
When Tesla shared its sales report for the third quarter, things were not looking good.
The manufacturer has been slashing the prices of its cars to boost sales.
But its profit margins took a hit, as did public confidence in the company.
Musk had big plans for turning the year around, namely the launch of the Cybertruck.
The first deliveries will roll out on 30 November.
There are over a million pre-orders placed, but we don’t know how quickly Tesla can churn these beasts out.
Since the sales report, Tesla shares are down 23% or $189 billion in market value.
Sure, Musk is the richest man in the world, but that’s still got to hurt.
So, what’s up with the dramatic decline in just a few hours?
Experts say there are several factors at play.
One is that the demand for EVs in general has declined.
As a result, Panasonic, Tesla’s battery supplier, has reduced production.
Another is the Cybertruck touted to save the company’s shares is actually contributing to its downfall.
The massive vehicle is proving to be hugely expensive to produce.
And thanks to its complex build, the timeline has been delayed multiple times.
So while the Tesla team has been putting energy into the Cybertruck for four years, no money has been made off it yet.
Musk’s net worth has sunk below $200 billion for the first time since June this year.
Worth $193 billion, he’s still the wealthiest person on the planet.