Arizona News Online

Tesla freefall: Elon Musk now $2.9B poorer

Tesla freefall: Elon Musk now $2.9B poorer

Investors are feeling big-time pain from the freefall in Tesla shares – including none other than founder Elon Musk.elon-musk-tesla

Following Musk’s revelation late Tuesday the electric car company’s sales aren’t looking so hot in China, shares of the once white-hot stock are today down $14.09, or 7%, to $190.30. And it’s not just a one-day blow. The stock, your neighbor (and your dentist) was probably bragging about owning last year, has lost a staggering third of its value since hitting its high point last September at $291.42 a share.

The wealth destruction when a popular stock corrects can be quite impressive. Since Tesla stock peaked, nearly $13 billion in shareholder wealth has been erased. And Musk is certainly taking a fair share of lumps himself. Musk owns more than 28 million shares himself, or about a quarter of the total outstanding. That means the charismatic founder of the company has watched $2.9 billion in Tesla paper wealth go up in smoke.

What’s pretty remarkable is that while these losses are huge, they probably don’t surprise Musk much. Musk himself warned that Tesla’s stock was “kinda high” back in September of last year. Investors initially blew off Musk’s assessment, sending the shares up to $281.19 a share after he made his comments. Analysts remain bullish on the stock. The average Wall Street analyst rates the stock “outperform” and has a $274.76 a share 18-month price target, says S&P Capital IQ. Perhaps they’ll be right.

Calendar

September 2017
M T W T F S S
« Aug    
 123
45678910
11121314151617
18192021222324
252627282930