Elon Musk is well known as one of the richest men in the world, but he just lost $12 billion in wealth overnight.
In Tesla’s earnings call, the CEO admitted that the outlook for the manufacturer wasn’t great.
The company’s earnings had dropped for a second quarter in a row, and things weren’t looking to improve in the near future.
This hit the Tesla boss’s wallet hard.
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Elon Musk lost $12 billion in wealth, and that’s just the tip of the iceberg
For a long while, Tesla has been the top dog in the EV world.
But thanks to a whole host of reasons, things have been on a downward slide for the past few months.
Not only is the state of California pushing to ban sale of its vehicles, but sales are down across the board.
Only 5,000 Cybertrucks were sold in this year’s second quarter, and things were looking similarly stark for the Model Y.
News that Tesla’s share-price has dropped nine percent meaning that Elon Musk lost $12 billion from his net worth, doesn’t exactly signal a turning of the tide either.
The company has reported $22.5 billion in revenue, the Economic Times reported.
During the earnings call, Musk didn’t shy away from the fact that the company had a ‘few rough quarters’ ahead.
What’s causing these problems for the company?
There are a number of factors at play here.
Firstly, Musk’s venture into politics has made him a divisive figure to some – and led to some people swearing off Tesla products.
Secondly, there are just more rivals out there contending for Tesla’s market, particularly in Europe.
BYD has now surpassed Tesla in the worldwide electric vehicle market, despite being basically non-existent in the US.
The question remains though – what can be done to turn things around?
Eyes will be on the long-awaited ‘affordable EV’ that the company has been promising since 2018.
Tesla has confirmed that it made ‘first builds’ of the vehicle in June, and are looking to roll it out later this year.
Last month, there was a lot of speculation that a prototype being test-driven might have been the long-promised Tesla.
The rumor mill has been churning overtime on this topic.
And pictures from the Tesla facility in Fremont, California, are only drumming up more speculation.
Whether or not this will be enough to turn things around remains to be seen.
But one thing is for sure – the company has an uphill battle ahead of it.
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