"Show Us the Results Now": Tesla Shares Plummet 14.5%, Next Month Seen as Major Hurdle

Analysts say that investors who have long bet on the future envisioned by Tesla CEO Elon Musk are now demanding concrete results rather than just promises.

Tesla's stock price plunged 14.5% in a single day on the 23rd local time.

This wiped out about 215 billion dollars in market capitalization, exceeding 300 trillion won.

Investor sentiment froze rapidly as second-quarter earnings fell short of market expectations and free cash flow turned negative for the first time in two years.

Concerns over rising costs across big tech companies due to expanded artificial intelligence investments also fueled the stock decline.

A review of the earnings conference call suggests that setbacks are inevitable for the schedules of new businesses that Musk has touted as future growth engines.

The robotaxi service, which was slated to expand to up to half of the United States within the year, has hit the brakes, and the demonstration of the third-generation humanoid robot Optimus also hinted at a possible delay from the original plan.

While reaffirming the existing plan to begin production of the electric semi-truck, which has been under development for years, by the end of this year, the market's response remained cold.

The situation is similar for SpaceX, which made its market debut last month.

Starting from an initial public offering price of 135 dollars and once surging past 225 dollars, the stock price has fallen nearly by half from its peak, dropping even below its IPO price.

This was largely driven by repeated delays in test launches for its core project, Starship.

A launch scheduled for the 16th of last month was canceled due to a booster engine issue, and this week's test flight was also postponed due to adverse weather in the Texas region.

Moreover, next month brings tests including its first earnings report since going public and the expiration of the lock-up period.

Concerns are rising that if the lock-up period restricting institutional and other major holders from selling their shares ends on the 6th of next month, up to 911.5 million shares could become tradable on the market, adding further downward pressure on the stock price.

The Wall Street Journal noted that, unlike its days as a private company, SpaceX is now a publicly traded firm that must continuously prove its quarterly earnings, profitability, and capital-raising capabilities.

Of course, Musk's long-term blueprint encompassing artificial intelligence, robotics, and the space industry has not vanished.

However, analysts point out that the market, which once assigned high valuations to future possibilities, is now starting to check whether those promises translate into actual sales and cash.

Reported by Kim Minjeong | Video by Seo Byeong-wook | Design by Yang Hye-min | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.