Musk’s financial downturn is chiefly linked to the decline in Tesla’s stock, which has fallen 8% just before the market closed on Tuesday, culminating in a broader loss of over 20% in the past month. This downturn has marked a significant change, as Tesla’s market value slipped below $1 trillion for the first time since November 2024.
The electric vehicle market has seen burgeoning competition, notably from China, paired with a slowdown in demand growth in the United States, leading to a considerable drop in sales. Musk’s political stance, although polarizing, has not been identified as the primary factor in Tesla’s recent struggles. Despite Tesla’s popularity in Europe, the company experienced a remarkable 45% decrease in sales last month as confirmed by the European Automobile Manufacturers’ Association.
Previously, in November 2024, after the U.S. elections, Musk reached a peak net worth of $347.8 billion. The investor sentiment then was buoyed by expectations that Musk’s influence in the Trump administration would lead to deregulation benefiting Tesla. Consequently, Musk gained approximately $83 billion, enhancing his financial standing substantially post-election.
In addition to Tesla, Musk oversees several other ventures, including SpaceX, the Boring Company, Neuralink, and xAI. He holds a significant position in the Department of Government Efficiency (DOGE) where his governance has resulted in controversial decisions, notably around workforce reductions in federal agencies.
Yet, as of the latest reports, Musk’s net worth stands at $380 billion, maintaining a significant lead of $144 billion over the second-richest individual, Mark Zuckerberg, CEO of Meta.
This substantial financial fluctuation underscores the volatile nature of stock markets, particularly for high-profile figures like Musk. However, his ability to sustain the top spot in global wealth rankings highlights the enduring value investors see in his diverse business portfolio.
