During the week ending October 20, Tesla suffered its worst financial performance thus far in 2023.

The company’s shares plummeted by 16% due to disappointing third-quarter earnings and a chaotic conference call led by CEO Elon Musk.

The challenging week caused Tesla’s market capitalization to decrease by approximately $138 billion. Meanwhile, Musk’s net worth declined by roughly $30 billion, according to Business Insider.

Although Tesla’s stock has seen a 72% increase year-to-date, it has recently surrendered some of its gains as the hype around AI fades and concerns about higher interest rates arise.

Tesla’s quarterly earnings report on Wednesday fell significantly short of Wall Street’s expectations. The company’s adjusted earnings-per-share of $0.66 missed the consensus estimate of $0.74. It also underperformed revenue forecasts by analysts.

During the post-earnings call, Musk mentioned that Tesla encountered significant production challenges with the Cybertruck (pictured above), which could have detrimental effects. Additionally, he warned about various economic factors that could negatively impact demand.

One analyst described Musk’s performance as a “mini-disaster,” while another characterized the world’s richest man as a “little baby” on the verge of tears.

The huge drop in Musk’s net worth shows how shaky Tesla’s fortunes really are.

Currently, Musk owns 13% of Tesla. Tesla stock accounts for the majority of Musk’s personal fortune. As a result, a major decline in Tesla’s share price will slash the amount of money that Musk has available to invest in the company.

This could create a vicious cycle in which less investment in Tesla causes investors to lose confidence, which leads to a further decline in share prices and even less money to invest.

Investors with holdings in Tesla’s Big Tech competitors are hoping that the company’s tumultuous week does not foreshadow similar struggles. This week, four other members of the “Magnificent Seven” mega-cap stocks – Microsoft, Google parent Alphabet, Meta Platforms, and Amazon – are set to report their own third-quarter earnings.

Image Source: Tesla Pablo, https://shorturl.at/bEV19