Topline<\/p>\n
Shares of Tesla plunged Thursday morning, accounting for a more than $17 billion cut to Elon Musk\u2019s net worth, after Musk warned his automaker would likely have a \u201cfew rough quarters\u201d ahead as federal electric vehicle tax credits expire soon. <\/p>\n
Musk said his automaker \u201cprobably could have a few rough quarters\u201d ahead as federal electric vehicle … More credits expire soon.<\/p>\n
Associated PressKey Facts<\/p>\n
Tesla shares fell more than 9% on Thursday to just below $302, following an earlier slide in premarket trading. <\/p>\n
The stock\u2019s decline follows Tesla\u2019s second-quarter report Wednesday, in which the automaker posted<\/a> the largest drop in quarterly revenue in over a decade and a loss of nearly $600 million in revenue from automotive regulatory credits.<\/p>\n Movement for Tesla\u2019s shares reduced the value of Musk\u2019s roughly 12% stake in the automaker from about $136.3 billion to $123.7 billion, accounting for a $12.6 billion slide, while the value of his remaining 9% bonus equity\u2014valued by Forbes at a 50% rate\u2014dropped by $5 billion.<\/p>\n When asked about the possible impact of President Donald Trump\u2019s policy bill eliminating a $7,500 tax credit for the purchase or lease of a new EV, which is set to take effect after Sept. 30, Musk said during Tesla\u2019s earnings call the company \u201cprobably could have a few rough quarters\u201d ahead.<\/p>\n Musk noted that \u201ccertainly by the end of next year, I think I would be surprised if Tesla\u2019s economics are not very compelling.\u201d<\/p>\n Forbes Valuation<\/p>\n $397.3 billion. That\u2019s the estimated<\/a> value of Musk\u2019s fortune as of Tesla\u2019s share price Thursday afternoon, amounting to a more than 4% reduction to his net worth.<\/p>\n Will The Loss Of Ev Tax Credits Impact Tesla?<\/p>\n 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 \u201cfree money\u201d in 2024 because of the credits. Potter said his firm remained optimistic, however, with estimates of a \u201cmodest reduction\u201d to credit revenue for 2025 and 2026, as \u201cthere\u2019s no need for drastic estimate revisions.\u201d Wedbush Securities\u2019 Dan Ives wrote Tuesday a loss of EV tax credits would be a \u201cheadwind\u201d for Tesla and its competitors, adding, \u201cThis cash cow will become less of the story.\u201d<\/p>\n Key Background<\/p>\n Tesla\u2019s 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\u2019s continued involvement in politics, however, as William Blair analysts downgraded Tesla stock as they said investors were likely \u201cgrowing tired of the distraction.\u201d The latest hit to Tesla\u2019s business comes after Trump signed his so-called \u201cOne Big Beautiful Bill,\u201d which eliminated a tax credit for consumers who buy or lease EVs. Musk opposed the cuts to EV and other clean energy credits, saying they would be \u201cincredibly destructive\u201d to the U.S., after saying<\/a> in December 2024 he believed \u201cwe should get rid of all the credits.\u201d <\/p>\n What To Watch For<\/p>\n Musk said during Tesla\u2019s investor call the automaker will likely have full autonomous ride-hailing accessible to half the U.S. by the end of 2025, adding, \u201cThat\u2019s at least our goal, subject to regulatory approvals.\u201d<\/p>\n Further ReadingForbesTesla Posts Sharpest Revenue Slump In Over 10 Years After Historic Sales DropBy Ty Roush<\/a>ForbesTrump Signs Signature Policy Bill On His July 4 DeadlineBy Zachary Folk<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Topline Shares of Tesla plunged Thursday morning, accounting for a more than $17 billion cut to Elon Musk\u2019s…\n","protected":false},"author":2,"featured_media":34572,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,11,13529,1019,28588],"class_list":{"0":"post-34571","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-elon-musk","10":"tag-musk","11":"tag-tesla","12":"tag-tesla-shares"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/34571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=34571"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/34571\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/34572"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=34571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=34571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=34571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}