Musk’s net worth drops $121bn after Tesla shares fall
Tech mogul and world’s richest man Elon Musk’ s net worth has fallen significantly since the December peak. Forbes reported that his net worth fell by $121 billion (€111.32 billion) after a difficult day for Tesla shares. On Thursday, Musk lost $8.8 billion (€8.10 billion), bringing his total net worth to $342 billion (€314.64 billion). This is a significant drop from the $464 billion (€427.68 billion) he was worth just three months ago, on 17 December.
Tesla’s stock performance mirrored the broader market downturn, with the S&P 500 falling 1.78%. This drop coincided with President Trump’s imposition of tariffs on Canada, China and Mexico, causing investor unease. Musk’s wealth is largely tied to Tesla company, making him particularly vulnerable to fluctuations in its stock price, reports The Independent.
Initially, Tesla shares rose after Trump’s election in November, reaching $520 (€479) per share in December. However, recent market volatility caused shares to fall to $261 (€240) in after-hours trading on Thursday. This is partly due to concerns about tariffs impacting Tesla’s business, as China remains the second-largest consumer market and Canada is a crucial source of imported parts for vehicle production.
Even Vaibhav Taneja, Tesla’s chief financial officer, expressed concern in January about the potential damage of tariffs on the company’s operations. Although shareholders initially expected positive results from Trump’s presidency, given Musk’s significant contributions to his campaign and Republican efforts, the market has experienced a series of declines since the introduction of tariffs. Economists argue that this uncertainty is contributing to a broader market slump.
Despite these challenges, Musk still has a net worth higher than on Election Day last November. Thanks to his other companies, SpaceX, Starlink and xAI he remains the wealthiest person on the planet, however, the Tesla brand has struggled to maintain its status, especially among liberals. Musk’s appointment as a ‘special government employee’ for the Department of Government Efficiency, which resulted in the loss of thousands of federal jobs, has contributed to his waning popularity. This has in turn led to Tesla cars and drivers being targeted in attacks, leading some owners to sell their vehicles.
Sales figures across Europe indicate a significant decline in Tesla’s market share. Germany saw a 71% drop, while Norway, France and Spain showed declines of 45%, 44% and 44%, respectively, according to Electrek. In addition, incidents such as a police escort required for a Tesla Cybertruck in New Orleans, arson attacks at Tesla power plants in Massachusetts and the ignition of a French showroom that damaged 12 cars raise concerns about growing public hostility toward the brand. Police are investigating these incidents as possible arson attacks.
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