Elon Musk, the world’s wealthiest individual and a key figure in President Donald Trump’s cost-cutting initiatives, experienced a significant decline in his net worth as the stock market reacted negatively to Trump’s tariffs, resulting in a drop in Tesla’s stock price.
Key Facts
– Musk’s net worth plummeted by $8.8 billion on Thursday, bringing it down to $342.8 billion, according to Forbes’ real-time estimates.
– His fortune has decreased by $121.2 billion since reaching a record high of $464 billion on December 17, when Tesla shares closed at an unprecedented $480 each.
– Tesla shares fell by 6% on the day, closing just above $263, which is approximately 45% lower than their peak last year.
– Tesla’s stock fell to its lowest price since Election Day as the S&P 500 dropped 1.8% to a low not seen since 2025, influenced by the impact of Trump’s tariffs on Canada, China, and Mexico on investor sentiment.
– Despite the decline, Musk remains the richest person globally, outpacing Meta’s CEO Mark Zuckerberg by over $120 billion.
Surprising Fact
To illustrate Musk’s $121 billion loss, the tenth-richest individual, former Microsoft CEO Steve Ballmer, has an estimated total net worth of $118.9 billion, while India’s Mukesh Ambani, Asia’s wealthiest individual, boasts a fortune of $89.8 billion.
Big Number
4.8%. Tesla shares have risen by this percentage from Election Day to Thursday, a stark contrast to the 91% surge experienced until December 17. Musk’s sizable contribution of around $300 million to Trump’s campaign and GOP endeavors initially fueled optimism among Wall Street investors about the potential deregulation benefits for Tesla, particularly in self-driving technologies. Musk remains $78 billion richer than he was on Election Day, partly due to increased valuations from his other ventures such as SpaceX and xAI.
Key Background
Tesla is highly vulnerable to tariff changes, with China being its second-largest electric vehicle market and significant dependence on imported Canadian components. Tesla’s CFO Vaibhav Taneja noted in January that tariffs would impact the company’s operations and profitability, given its reliance on parts sourced globally. Musk plays a pivotal role in Trump’s administration as head of the Department of Government Efficiency (DOGE).
Crucial Quote
“Musk’s involvement with DOGE and the Trump administration may deter some consumers in the US and Europe, complicating demand dynamics,” said Baird analyst Ben Kallo in a recent client note.
