Electric car manufacturer Tesla witnessed an $80 billion plunge in its market value during Thursday’s trading, marking a significant decline in its stock. The drop came after CEO Elon Musk, who also saw an $18 billion reduction in his wealth, cautioned of a notable slowdown in Tesla’s sales for the year.
During a conference call with analysts following the announcement of business results on Wednesday evening, Musk forewarned that despite price cuts impacting profit margins, Tesla’s sales growth would decelerate significantly this year.
The announcement raised investor concerns about weak demand, resulting in a 12.15% drop in Tesla’s stock by the end of Thursday’s trading — its most substantial decline in nearly a year.
Despite the substantial loss, Elon Musk remains the world’s richest person according to Forbes magazine estimates, retaining the title even after losing $18.8 billion of his wealth. Over the past year, Tesla has faced significant market value losses, totaling about $210 billion within this month alone.
Tesla’s stock decline has proved profitable for short sellers, with estimated profits from short selling operations reaching $3.45 billion since the beginning of the year. According to Ortex, specializing in data and analysis, Tesla is the American company generating the most profit from short selling activities.