Tesla shares fell over 9% on Thursday, following an earlier slide in premarket trading. The stock’s decline follows Tesla’s second-quarter report, which posted the largest drop in quarterly revenue in over a decade and a loss of nearly $600 million in revenue from automotive regulatory credits. Musk’s 12% stake in Tesla was reduced from $136.3 billion to $123.7 billion, accounting for a $12.6 billion slide. Forbes valued his remaining 9% bonus equity at a 50% rate by $5 billion.
Musk mentioned that Tesla could have a few rough quarters ahead due to President Donald Trump’s policy bill eliminating a $7,500 tax credit for the purchase or lease of a new EV. He believed that Tesla’s economics would be more compelling by the end of next year. The estimated value of Musk’s fortune as of Tesla’s share price is $397.3 billion, amounting to a more than 4% reduction to his net worth.
Alex Potter, an analyst for Piper Sandler, wrote Monday that Tesla should face questions about the impact of losing EV tax credits, noting the automaker added about $3.5 billion in “free money” in 2024 because of the credits. Wedbush Securities’ Dan Ives wrote Tuesday a loss of EV tax credits would be a “headwind” for Tesla and its competitors.
Tesla’s shares have fallen more than 12% on the year, though the stock has rebounded in recent months after Musk departed the Trump administration as a special government employee. Some economists have criticized Musk’s continued involvement in politics, as William Blair analysts downgraded Tesla stock.
