Is Tesla’s Biggest Risk its Own CEO?

Elon Musk’s net worth has dropped below $400 billion for
the first time in two months, driven by a sharp decline in Tesla stock
price.

Tesla shares and options account for more than 60% of
Musk’s wealth, which peaked at $486.4 billion on December 17 following Trump’s
election. However, since then, the automaker’s stock has fallen 27%.

Last week was Tesla’s worst since early October, with
shares falling after the company reported disappointing monthly sales. To make
matters worse, key insiders and directors sold off large amounts of stock this
month.

Elon Musk’s brother, Kimbal Musk, who’s a Tesla board
member, along with board chair Robyn Denholm and Chief Financial Officer
Vaibhav Taneja, sold roughly 200,000 shares combined.

Kimbal Musk sold 75,000 shares worth $27.6 million on
February 6. A few days earlier, on February 3, Denholm sold 112,390 shares for
more than $43 million, whileTaneja offloaded 7,000 shares worth $2.8 million.

These stock sales come at a time when Tesla is finding it
increasingly difficult to separate its brand identity from Elon
Musk’s public image. The billionaire has been making
frequent headlines in major media outlets — but not for the right reasons.

Let’s get back to sales, which were shockingly bad in
January. All around Europe, car buyers opted for cheaper Chinese alternatives.

In the UK, Tesla sales dropped about 8% YoY, while Chinese
EV maker BYD saw a staggering 550% surge, selling 1,614 cars. In Germany, sales
of Tesla vehicles plunged 60%, while BYD’s rose 69%. France recorded a 63%
decline in Tesla sales while Spain saw the steepest drop of 75%. In Norway,
Tesla sales fell 38%, and in Sweden, they were down 44%. In China, one of
Tesla’s most significant markets, sales slipped 11.5%.

Despite Tesla’s current struggles, some investors are
betting on Musk’s
relationship with Donald Trump, hoping that his
influence in shaping the new Republican administration’s policies could benefit
the automaker.

This article was written by FL Contributors at www.forexlive.com.