Tesla Stock Collapse and Market Chaos Cause Elon Musk’s Wealth to Drop by $121 Billion
According to Forbes, Elon Musk’s fortune has dropped $121 billion since its December peak following one of the worst days for Tesla shares this year. Forbes estimates that the Tesla CEO’s net worth dropped to $342 billion after he lost $8.8 billion in the stock market meltdown on Thursday. According to the magazine, Musk’s value fell by $464 billion on December 17, three months ago.
A day after President Donald Trump alarmed investors by imposing tariffs on Canada, China, and Mexico, Tesla stock plummeted along with the S&P 550, which fell 1.78 percent on Thursday. Musk’s business assets are the primary source of his fortune. Following Trump’s election in November, Tesla’s stock soared. The stock reached $479 per share in December. In the after-hours market on Thursday, it was trading at $261. The company’s second-largest consumer market is China.
Like other American manufacturers, Tesla manufactures its cars using imported parts from Canada. In January, Vaibhav Taneja, the company’s chief financial officer, even cautioned investors about tariffs’ adverse effects on business operations.
Investors anticipated positive news for Tesla following the election. Musk contributed $300 million to Trump’s campaign and other Republican initiatives. However, since Trump started threatening tariffs, enforcing them, and changing his mind, the stock market has gone through many negative days. According to economists, the market crisis is partly caused by uncertainty.
Due to his other businesses, SpaceX and xAI, Musk is still $78 billion richer than on election day. He continues to be the world’s richest man. For Musk’s net worth to fall below that of Mark Zuckerberg, the CEO of Meta, he would need to lose a further $116 billion. Zuckerberg is presently the second-richest man in the world, with an estimated $226.7 billion in assets.
In addition to being hurt by a declining stock market and rising unemployment rates, both of which Musk is causing, Tesla’s reputation has taken a hit because Musk was appointed a “special government employee” by the Department of Government Efficiency, which resulted in the loss of thousands of federal government jobs.
Musk’s growing unpopularity is making Teslas and their drivers the targets of attacks, which is forcing owners to purchase their cars. According to Electrek, sales in Germany, Norway, France, and Spain are down 71%, 45%, and 44% throughout Europe.
Recently, a police escort was required to remove a Tesla Cybertruck from the Mardi Gras parade in New Orleans. Twelve automobiles were damaged earlier this week when a French dealership caught fire, and Tesla power plants in Massachusetts were set on fire. Authorities in both regions believe the fires were started on purpose.
