Tesla shares plummeted 9% on Thursday, wiping out over $17 billion from Elon Musk’s net worth. The decline comes as federal electric vehicle tax credits are set to expire soon, with President Donald Trump’s policy bill scheduled to take effect after September 30.
Musk warned that Tesla would likely face “a few rough quarters” ahead due to the loss of tax credits. However, he expressed confidence in the company’s future, saying its economics will be compelling by next year.
The stock’s decline reduced Musk’s stake value from $136.3 billion to $123.7 billion, accounting for a $12.6 billion slide. His remaining 9% bonus equity also took a hit, dropping by $5 billion.
Tesla’s share price fell below $302 on Thursday, following an earlier premarket trading session. The company posted its largest quarterly revenue drop in over a decade and reported a loss of nearly $600 million from automotive regulatory credits.
Analysts at Piper Sandler and Wedbush Securities warn that losing EV tax credits will be a challenge for Tesla and its competitors. However, some analysts remain optimistic about the company’s future, with estimates suggesting a modest reduction in credit revenue for 2025 and 2026.
Tesla’s shares have fallen over 12% on the year but have rebounded in recent months after Musk left his role as a special government employee. The company aims to make full autonomous ride-hailing services available to half of the US by the end of 2025, subject to regulatory approvals.
Source: https://www.forbes.com/sites/tylerroush/2025/07/24/elon-musks-net-worth-drops-17-billion-as-tesla-shares-plunge