Tesla shares dropped another 12% in the first trading session of the new year after the company's final quarterly update of 2022 missed analysts delivery expectations.
Even after a modest bounce the following open, stock was still trading hands at under $110.00 — a first in two and a half years.
In total, the world's most famous EV maker has depreciated over $960 billion since the peak in late 2021 — about $230 billion more than the market capitalizations of the other nine top 10 largest carmakers in the world put together.
The biggest loser, by far, has been Elon Musk himself. With 424 million shares still in his possession, even after an estimated $23 billion liquidation over the 2022 calendar year, the value of his position has plummeted by over $84 billion since September alone.
Coupled with the loss of value for his 127 million options, the estimated devaluation for the now privately held Twitter, the total hit to his net worth has been pegged at around $200 billion.
It's Like Losing Four Mark Zuckerbergs
That's just shy of the GDP of Greece.
It's also enough to have dropped Musk out of the No. 1 spot for richest man alive, to No. 2, under Bernard Arnault of Moët Hennessy Louis Vuitton.
Another major hit to Tesla stock could relegate the once untouchable tech entrepreneur to No. 3, as he falls below Indian commodities magnate Gautam Adani.
Musk fans are undoubtedly reeling as their idol falters to a degree that only major corporations and medium-sized nations have ever faltered, but the truly unthinkable may be coming next…
He might lose it all.
Now, of course, Elon has other investments, most notably 47.5% of SpaceX, which, though private, was valued at $150 billion in a proposed stock sale last November.
And he's definitely still got piles of cash lying around here and there, so losing it all, in this case, is still nowhere near being what most of us think of as going broke.
In this context, a total loss would be watching as Tesla crashes and burns in the most spectacular corporate collapse in the history of capitalism.
It May Be Darkest Right Before the Dawn… But Dawn's Still a Ways Off
And that may well happen in the next couple of years.
Unfortunately for Elon Musk and his fellow shareholders, this isn't a problem that can be worked around or powered through with brute intellectual force and marketing brilliance.
Right now not just Tesla but the whole EV market stands at a precipice.
Whether any of it still exists by 2030 is under question, and things aren't looking too good.
So what's happening to trigger all this uncertainty in a sector that seemed all but guaranteed to grow for the next half a century?
Let me explain what I mean by asking a question:
Would you ever think about purchasing an electric vehicle if you could run your own existing ICE car as you do today, only without producing a single molecule of carbon dioxide?
You'd fill up as you always have, drive as you always do, and pay as much as or less than you do today for gas or diesel, only your total carbon footprint would be zero.
The only byproducts of the reaction in your engine would be water vapor and traces of inert nitrogen.
Would you bother with a Tesla? Would you bother with any EV? Would you take the time to learn how to charge your vehicle and get accustomed to charge delay and the sporadic availability of charging stations? Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: “How to Make Your Fortune in Stocks”
It contains full details on why dividends are an amazing tool for growing your wealth.
Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: “How to Make Your Fortune in Stocks”
You're the Consumer… Given a Choice, What Would You Do?
Or would you just keep your car until you wore it out only to get a newer version of the same thing?
Right now, thanks to a revolution in zero-carbon green fuel, Elon Musk, the EV car industry, and millions of prospective EV buyers around the world are, whether they know it or not, about to face this very proposition.
The green fuel I'm describing is something you've heard of before, only not in the context of consumer transportation.
I'm talking about ammonia.
You may know it as a cleaning agent, but ammonia is actually a potent, carbon-neutral fuel that can operate in most any standard internal combustion engine with some minor tweaks and retrofits.
Back in the 1960s, ammonia powered the NASA's X-15 rocket planes to set altitude and speed records which still stand to this day.
Twenty years prior, it was used as a diesel alternative in war-stricken western Europe.
The Last Piece of the Puzzle: Carbon Neutral Production
But as a mass-produced consumer fuel, ammonia was simply too costly and too dirty to produce in the required quantities.
All of that changed very recently thanks to a recent innovation in green ammonia production.
With this new breakthrough, all it takes to produce unlimited quantities of the fuel is air, water, and electricity.
The production process itself is carbon-neutral and so efficient that when coupled with an electrical generator, it could serve as a power storage medium for renewable energy generation facilities such as wind and solar farms.
What's coming next could be so widespread and so encompassing that the EV industry will be just one of many major markets to feel the disruption.
Keith Kohl, investment director for our flagship front-end newsletter, Technology and Opportunity, has been watching this story develop over the last year.
After studying the markets closely, he's identified two ammonia plays that will get investors the perfect blend of exposure to this coming tidal wave.
The First Ammonia Fuel Millionaires Are Being Minted Today
One of them, a pure play still in its early stages, could be looking at order-of-magnitude growth just this year alone… And as absurd as this may sound, even that will be just the first step in what ultimately happens.
Real fortunes are made in moments like this. I'm talking about generational wealth-caliber gains, enough to feed your children's children and beyond.
The only catch is… only the earliest and the bravest to show up will grasp those fruits.
To get up to date on all the crucial data, the technology, the market itself, and what the future may bring, check out Keith's presentation on green ammonia right here.
It takes minutes to view, and you can have instant access absolutely free of charge.
These few minutes could change your life forever.
Or you could wait to read about this in The Wall Street Journal and blow the biggest opportunity you'll ever get.
Fortune favors the bold, Alex Koyfman His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.
Fortune favors the bold,
His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.