Tesla s market value evaporated by 330 billion overnight, and Musk lost the richest man

Mondo Cars Updated on 2024-03-07

Chinese According to the latest Bloomberg Billionaires Index, Tesla CEO Elon Musk was surpassed by Amazon founder Jeff Bezos with a net worth of $198 billion, who was worth $200 billion. For the first time since the fall of 2021, the 60-year-old Bezos has re-emerged as the world's richest man. This shift has sparked global attention, with markets speculating about who the new king will be.

The ranking of the list estimates personal wealth based on changes in the market, economy and other factors. Notably, Bezos is selling Amazon** at the same time as reclaiming the title of richest man, with more than $8.5 billion worth of sales in recent weeks. Musk's net worth has shrunk by $31 billion so far this year, and Tesla's stock price has been about 24%.

In addition, Musk's "sky-high" compensation package at Tesla was rejected by a Delaware court, which was a big blow. On January 30, the court ruled that Tesla's board of directors had failed to prove that the compensation plan was fair and that the plan was invalid. Although Musk did not respond directly, he said on the social platform "X" that he "never register a company in Delaware" and launched a survey, and the results showed that nearly 88% of users supported Tesla's change of registration to Texas. This decision has sparked concerns about Tesla's future.

Tesla's stock price continued to fluctuate, falling 716% to close at 188$14 shares, the market value evaporated by $46.1 billion. There is a view that the sharp drop in stock prices is related to sales data in China. On March 4, the Passenger Association released data that BYD's wholesale sales in the month were about 1220,000 units, Tesla's sales in China are about 60,000 units. This data has added to the market's concerns about Tesla's prospects.

Under the first war in the domestic auto market, Tesla cut prices to boost sales, but the effect was not good. Tesla's financial data will decline in 2023, and its gross profit margin will decline by 7% year-on-year35 percentage points, net profit decreased by 23% year-on-year. At the fourth-quarter earnings conference, Tesla did not disclose its 2024 delivery target, but only said that it would focus on developing the next generation of vehicles, causing market uncertainty.

According to the Morgan Stanley survey, many institutional investors are bearish on Tesla, expecting it to underperform over the next 6 to 12 months. Tesla is excluded from AI-related tech stocks**. Morgan Stanley analysts said that Tesla's perception of progress in the field of artificial intelligence is "very bad", causing Tesla to stand on the opposite side of the field of artificial intelligence.

The market is full of uncertainties, who can become the new king? Can Musk return to the richest man and lead Tesla out of trouble? Or are other emerging tech companies coming to the fore? We'll see.

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