It's been a bad week for Elon Musk. Tesla closed at $313.03 on Friday (July 24), plunging nearly 18% this week and recording its worst weekly performance since 2022. SpaceX also extended its decline, falling 7.2% in five trading days, closing at $115.07 on Friday, the lowest level since the company's record IPO last month.
The declines in both stocks wiped out about $130 billion from Musk's fortune, just weeks after he became the world's first trillionaire. "(Former) Trillionaire," Musk wrote in a post on the X platform on Friday.
Tesla's plunge was triggered by the company's second-quarter earnings late Wednesday that missed expectations. The company's cash flow turned negative as spending surged on future projects such as robotaxis, humanoid robots and massive chip factories.
"We expect this to put pressure on free cash flow and delay earnings growth without generating any near-term returns for shareholders," analysts at Argus Research, which has a "hold" rating on the stock, wrote in a note on Friday. "We believe it is highly unlikely that Tesla will achieve sustained earnings growth in the near term."
Tesla’s stock price has fallen by 30% this year, making it the worst-performing stock among technology giants.