That’s why Elon Musk loses $41 billion in less than two weeks

Elon Musk, CEO of the American electric car manufacturer Tesla, lost about $14 billion in 13 days due to the deterioration of the electric car market.

Elon Musk’s net worth suffered a multi-billion dollar hit on October 30, the second in less than two weeks, as Tesla shares fell from the previous close of $207 to $197, or 5%, which led to a decline in the value of Musk’s 715 shares. One million shares and options gained $7 billion in less than five hours of trading

This decline deepened a sharp decline that began when Musk revealed disappointing third-quarter earnings and poor expectations after the market closed on October 17. Since then, Tesla shares have fallen by 23%, wiping $189 billion off its market value and severely damaging the company. The wealth of the richest person in the world declined by about $41 billion

According to Fortune magazine, it is not clear what caused the sharp one-day decline. But the announcement by Panasonic, the largest battery supplier to Tesla, of reducing its production due to decreased demand for electric cars, could be a factor. Or perhaps markets are simply reevaluating Tesla as primarily a car manufacturer, contrary to the vision Musk has long promoted of a promising technology phenomenon with software-sized margins.

Tesla’s third-quarter numbers, and Musk’s strict comments on the earnings announcement, indicate that Tesla’s profitability is rapidly moving towards the profitability of its automotive counterparts, and not towards the Oracle-like heights that it was announcing.