Tesla plunge hits Elon Musk net worth after worst day
Tesla's roughly 13.5% Thursday plunge—one of its worst days in years—has pressured Elon Musk net worth by erasing a large slice of the EV maker's market value after weak profits and heavy AI spending. Shares are down about 27% this year as investors lose patience with Robotaxi and Optimus timelines.
Key Takeaways
- Tesla stock fell about 13.5% on Thursday, among its biggest single-day losses in years, according to The Guardian.
- The automaker has lost about 27% of its market value in 2026 amid weaker profits and huge capital spending on AI and robotics.
- Second-quarter earnings missed Wall Street expectations even though revenue beat forecasts.
- Free cash flow turned negative by $1.1bn after $5.8bn of quarterly spending, the first such swing in more than two years.
- Elon Musk faced investor questions on Robotaxi and Optimus, with limited consumer availability so far.
Why did Tesla stock fall so sharply this week?
According to The Guardian, Tesla shares tumbled about 13.5% on Thursday after second-quarter results disappointed on profitability. The company made 31 cents per share versus the 51 cents analysts expected, though it beat revenue predictions.
CNBC separately reported revenue of $28.2 billion, up 26% year over year, while adjusted earnings still missed consensus and operating margin compressed to 1.4%. A 142% surge in capital spending helped swing free cash flow negative and fueled the sharp selloff.
The drop landed as broader U.S. markets also fell. Nasdaq slipped more than 2%, and the S&P 500 and Dow each lost more than 1% after early Magnificent Seven earnings failed to impress investors worried about heavy AI outlays and inflation.
How does the selloff affect Elon Musk net worth?
Because Tesla is the centerpiece of Musk's public fortune, Thursday's double-digit rout and a roughly 27% year-to-date market-value decline put clear pressure on Elon Musk net worth. The Guardian noted Tesla is now the poorest-performing Magnificent Seven company this year.
Bloomberg, cited by The Guardian, said losses across Alphabet, Amazon, Meta, Nvidia, Apple, Microsoft, and Tesla wiped out $767bn in market value on Thursday. Alphabet alone fell 6.5% after higher spending plans and its first-ever cash burn. For related coverage, visit BlasterPost's Net Worth & Wealth hub.
What are investors worried about next?
On Wednesday's earnings call, Musk faced repeated questions about the timeline for Tesla's driverless Robotaxi service and the Optimus humanoid robot. He has long pitched both as transformative revenue engines, but Robotaxis remain available only on a limited basis in the United States, and Optimus is not available to consumers.
Musk said Optimus could become Tesla's biggest product ever while warning of major hurdles, and he blamed Robotaxi's slow rollout on safety concerns and fear of a regulatory crackdown after deadly accidents. That caution did little to calm markets focused on near-term returns.
Tesla spent $5.8bn in the second quarter, producing negative free cash flow of $1.1bn for the first time in more than two years. Even with stronger EV sales from European buyers and rising fuel costs, investors are weighing that auto strength against the cost of the AI and robotics pivot. Some traders who shorted Tesla into earnings, as CNBC detailed, have already booked gains from the roughly 14% slide.