Elon Musk, the man who can launch rockets into space but recently struggled to get a good word about a new model of Tesla, recently hit a small financial pothole. Imagine, his net worth had dropped a whooping $15 billion that same year alone! That is greater than the annual GDP of some countries, yet for Musk, it appears to be as routine a transaction as can be.
What Happened?
The Tesla party was conducted on the 8th of October, which was a mega event called “We, Robot” held at the Warner Bros Studios in California. It was supposed to demonstrate the new futuristic concepts about the company. Musk launched two new cars; the Cybercab and the Robovan and a new generation of the Optimus robots.
But rather than being impressed many analysts and investors were left scratching their head— or worse, let down. Others went to the extent of calling it as being boring. Well, hey, when you’re advertising you have a robot to run everything from babysitting services to lawn mowing services, there sure are some pretty high expectations for easy wins!
What Went Wrong?
Let’s start with the robots. The Optimus robots that Musk introduced are capable of doing almost everything that a man does. Starting with the dog walking to pleasing guests at your next BBQ party, suspending these robots actually looks like they can do your job. Musk’s pitch? “It’ll do anything you want” He told. Sounds awesome, but there are exemplary stories around, and not everyone believes in them. Some people found the whole idea to be too ‘other-worldly’ and rather than feeling excited about the opportunities the technology presented, they were more than a little creeped out.
But the biggest point of concern was the take over by Cybercab, a brand new taxi car that does not even have a steering wheel or brake pedals. The problem? Musk was somewhat precarious with specifics— such as when it will definitely be usable. He said that production would begin at some vague time before 2027. Investors who were expecting a solid plan, got a mere speculation.
The Financial Fallout
I think you can imagine that disappointment did not only come in the form of words – it influenced Tesla’s stock price too. The stock of the company fell to a low of nine percent after the debacle. Tesla shares were $238.77 before Model 3 reveal and then it was $217.80 by the end of the week. Now, for some people, that may not be that significant of a drop, but since Musk owns roughly 13% of Tesla, this seemingly small loss had quite the impact.
Two days later at the close of trading on the business day on the 11th of October, Musk’s fortune had declined to $240 billion, a decrease of $15 billion. You’re right, after such a loss, he still sits at the top of the list of billionaires and remains the richest man in the world.
Is Musk Bothered?
When you’re a man with four in the hundred billions, a $15 billion loss is as it would be unheard of to lose a couple of coins on the couch. Yes, it is a giant number, however, even more so when you consider Musk’s wealth which is simply off the scale. But he must really appreciate being alive today because even according to the Bloomberg Billionaires Index, he is still the richest man on earth.
What’s Next?
It could be handy to see that despite the stock volatility and general nastiness in the market, Tesla is not ready to give up on its grandiose plans. Elon is always up for doing the unthinkable, from launching cars to Mars, to creating a robot nanny. This latest event failed to provide investors with quite that thrill, but all the same it is unequivocally apparent that Musk is continuing to look to the future.
For now, though, we’ll just have to wait and see if the Cybercab really becomes a real life car to hit the market before 2027 or simply remains a futuristic dream of car manufacturing companies.
