Tesla stock (NASDAQ:TSLA) has seen some pressure this 2024, with the electric vehicle maker seeing a 4.54% drop on Wednesday. With this, TSLA has become the worst-performing stock in the S&P 500 index this 2024 so far. It has also resulted in CEO Elon Musk, whose net worth is closely tied to Tesla stock, becoming the world’s third-richest person by net worth.
As noted in a Barron’s report, Tesla stock has been down about 31% year-to-date. In comparison, the S&P 500 is up 8% year-to-date. Tesla’s 4.5% slide on Wednesday resulted in Elon Musk’s net worth being cut by $4.5 billion to $191.8 billion, as per Forbes‘ estimates. This means that Musk’s net worth has fallen below Amazon founder Jeff Bezos, whose net worth is estimated by Forbes to be $194.8 billion.
Tesla’s recent drop also increased the gap between Musk and LVMH Moët Hennessy Louis Vuitton Chairman and CEO Bernard Arnault, whose net worth is estimated at $241.4 billion as of Wednesday’s close. Arnault is currently listed by Forbes as the world’s richest person by net worth.
While sentiments surrounding TSLA stock seem quite negative for now, the electric vehicle maker has received a vote of confidence from one of its supporters on Wall Street. Wedbush, for one, maintained Tesla’s “Outperform” rating and optimistic $315 price target. As per analyst Dan Ives, “Now is not the time to throw in the towel on Tesla…despite the dark black clouds forming.” Ives also noted that “we have been here before with Musk/Tesla.”
It should be noted that while Tesla has lagged behind the S&P 500 in the last six-month, one-year, two-year and three-year periods, its long-term performance paints a different picture. Over the past five years, Tesla’s stock has soared by nearly 800%, rewarding those who bought in early. Early investors who held onto their shares since the company’s IPO in 2010 have seen even more impressive returns.
Disclosure: I am long TSLA.
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