Elon Musk’s fortune has dropped below $400 billion for the first time this year, as shares of Tesla, the electric vehicle company he leads, tumbled amid concerns over demand, intensifying competition, and political controversy.
Tesla’s stock fell 6.3% on Tuesday, closing at $328.50 on the Nasdaq, its lowest point in three months.
The company’s shares have declined nearly 32% from their record high of $479.86 in December.
The stock slump has wiped out $53.7 billion from Musk’s net worth since the start of the year, leaving him with an estimated fortune of $379 billion, according to the Bloomberg Billionaires Index.
The latest decline comes as Tesla faces growing pressure on multiple fronts. Chinese automaker BYD, a key competitor, has gained ground in the global EV market, with advancements in autonomous driving technology and aggressive pricing strategies. Meanwhile, Tesla’s sales in China and Europe were weaker than expected in January, raising investor concerns about the company’s ability to sustain growth.
Adding to the turbulence is Musk’s increasingly polarizing political stance. A recent report from Oppenheimer analysts cautioned that Musk’s close ties to former President Donald J. Trump and his active political engagement could alienate customers and employees. “Musk’s political activity has fans in certain circles, but his public stance may deter potential buyers as the Trump administration tests the limits of its power,” the report noted.
What to know
Musk has long been an outspoken supporter of conservative causes. In the lead-up to the 2024 election, he donated nearly $290 million to Trump’s campaign and other Republican initiatives. Since then, he has taken on a more direct role in politics, serving as head of the Department of Government Efficiency, a newly formed federal agency focused on reducing government spending.
- Despite the stock’s decline, Tesla remains the world’s most valuable automaker, and Musk continues to hold the title of the world’s richest person. He owns roughly 13 percent of Tesla’s shares, worth an estimated $150 billion, along with additional equity awards that remain tied up in legal proceedings.
- The company’s recent challenges have sparked debate over whether Tesla can maintain its dominance in the EV market. While Musk has led the company through volatility before, analysts warn that shifting consumer sentiment, increased competition, and political entanglements could present new hurdles.
For now, Tesla investors and Musk himself are watching closely as the company navigates a rapidly evolving landscape—one where the billionaire’s fortune remains inextricably linked to the automaker’s success.
