Elon Musk Left Poorer By $20B In Single Day Amid Tesla's Post-Earnings Plunge; LVMH's Bernard Arnault Is Closing In
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) shares slumped nearly 10% following the company's Q2 earnings, wiping off roughly $90 billion off the company's market capitalization. This was despite the company exceeding top- and bottom-line expectations. The drop was attributed to an increase in the 'other income' component, a production warning for Q3, hints at more price cuts, and a lack of clarity on the margin outlook. CEO Elon Musk's net worth fell by $20.3 billion as a result.
July 21, 2023 | 10:13 am
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Tesla's stock price fell nearly 10% following Q2 earnings, despite exceeding expectations. Concerns over 'other income', Q3 production, price cuts, and margin outlook led to the fall.
Despite exceeding top- and bottom-line expectations, Tesla's stock price fell due to concerns over an increase in the 'other income' component, a production warning for Q3, hints at more price cuts, and a lack of clarity on the margin outlook. This indicates that investors are concerned about the company's future profitability and growth, leading to a negative short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100