**Elon Musk’s Challenging Week: Cybertruck Setbacks and a $100 Billion Loss**
Elon Musk, the richest individual globally with a net worth of $333 billion, is facing a notably difficult week. A succession of obstacles, ranging from judicial decisions to production delays, are overshadowing his enterprises.
### A $100 Billion Hit
The week commenced with a significant financial blow. A judge invalidated a sizable stock grant that Musk had persuaded Tesla shareholders to endorse, allegedly by threatening to exit the company. Initially assessed at $50 billion, the grant would now be valued at an astounding $100 billion due to Tesla’s stock surge post-election. For Musk, even with his substantial wealth, this represents a notable loss. The grant would have enlarged his advantage over Jeff Bezos on the vital billionaires ranking.
### Cybertruck Production Faces Challenges
Compounding Musk’s issues, concerning developments have surfaced from Tesla’s factory in Austin. Production of the much-anticipated Cybertruck seems to be experiencing a downturn. Assembly line workers were recently informed not to come to work for three days, following numerous similar slowdowns throughout October. According to *Business Insider*, which consulted four factory insiders, employees have been assigned cleaning and training duties to occupy their time, while chances for overtime have significantly decreased.
Tesla has not commented on the factors attributing to the slowdown, but the timing raises concerns. Automotive firms typically increase production in preparation for spring sales, driven by tax refunds and better driving conditions. If Tesla executives expected robust Cybertruck sales in the upcoming months, the factory should be operating at full throttle at this juncture.
### Inventory Building Up
Instead, Cybertruck inventory seems to be accumulating, a concerning indication for a company that flaunted two million pre-orders. However, with only a $100 deposit necessary to secure a vehicle, it appears that many of those pre-orders were not serious intentions. Analysts estimate that only approximately 50,000 of those pre-orders have resulted in actual sales.
Rather than lowering prices to clear inventory, Tesla has increased the Cybertruck’s average price, even taking down its cheapest trim from the website in August. This occurs as the vehicle’s 350-mile range fails to meet Musk’s prior promises. Such difficulties are worrying, especially since Cybertruck sales are among the few bright spots for Tesla, with other models experiencing stagnation or declining market presence.
### Missing Expectations
Notwithstanding these obstacles, the Cybertruck has managed to outpace competing electric trucks from Rivian and Ford, with an estimated 28,000 units sold in the first three quarters of 2024, according to Cox Automotive. However, this figure still falls below analysts’ predictions of 48,500 units for the year.
A larger question hangs in the air: Can Tesla meet Musk’s ambitious target of selling 250,000 Cybertrucks each year? This production capability is crucial to Musk’s vision for Tesla’s future. Yet, with the Cybertruck currently not available outside North America and facing regulatory challenges in Europe and China, the company is nearly entirely focused on the U.S. truck market. While two million pickups are sold each year in the U.S., attaining even one-eighth of that market remains uncertain.
### A Recall Predicament
Further complicating Tesla’s predicaments are the Cybertruck’s reliability concerns. The vehicle has already endured six recalls in 2024 alone, a concerning tally in the automotive realm. The latest recall involved a defective part that could result in loss of power to the wheels.
Social media is teeming with grievances from Cybertruck owners, covering issues from oil leaks to total system failures. One Canadian owner recounted that his vehicle ceased functioning after just two hours of usage while attempting to defrost it during winter weather. These problems are generating doubts regarding the Cybertruck’s long-term sustainability.
### A Possible Upside?
If Cybertruck sales continue to dwindle and Tesla’s stock falters, there may be one unforeseen advantage for Musk: the stock grant he lost out on could ultimately be valued at less than $100 billion. However, the overarching question persists—how much of Tesla’s future hinges on the Cybertruck’s success, and can Musk rectify the situation before it becomes too late?