Tesla Drops 14% as Cash Flow Turns Negative
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- Tesla stock plummeted 14% following its earnings report, erasing approximately $18 billion from Elon Musk's net worth
- Tesla disclosed $1.1 billion in negative free cash flow, which one outlet framed as 'betting the company's survival'
- A short seller who successfully bet against Tesla into the earnings release is now targeting another stock, per CNBC, indicating pre-earnings bearish positioning
Why it matters: Despite a headline revenue beat, Tesla's $1.1 billion negative free cash flow triggered a 14% stock plunge that erased $18 billion from Elon Musk's net worth. The Trefis headline frames it precisely: the revenue beat 'hid the number that actually sank the stock.'
