Tesla, the electric car company founded by Elon Musk, has shaken up the auto industry. He founded an automaker that not only stayed afloat, but earned a market valuation that lapped established competitors like Peugeot and Fiat Chrysler.
But right now that is changing. Tesla’s stock price declined by more than a third over the last month, marking a radical shift for the market darling.
There will always be price fluctuations. But a different danger lurks here: Investors are losing faith in the infallibility of the South African visionary.
Mr. Musk’s improbable successes with PayPal, Tesla and Space X long gave him a special aura and sent share prices soaring. Those prices enabled Mr. Musk to turn his visions of an electric car and his “giga factory” for batteries into reality.
But without this source of cheap financing, his plans could run into trouble, including in his core business.