Elon Musk, the world’s richest man and a key figure in President Donald Trump’s administration, has recorded a $121 billion net worth loss as Tesla stocks fall.
The market turbulence, driven by Trump’s levies on imports from Canada, China, and Mexico, sent Tesla’s stock price plummeting, marking its lowest close since Election Day.
Musk’s net worth, now standing at $342.8 billion, has fallen by $121.2 billion since Tesla’s record closing price of $480 per share on December 17.
With Tesla stock dropping 6% on the day to settle just above $263, the company is now trading 45% below its all-time high.
The decline contributed to broader market concerns, with the S&P 500 shedding 1.8% as investors reacted to Trump’s aggressive trade policies.
Despite the setback, Musk remains the wealthiest person in the world, maintaining a lead of more than $120 billion over Meta CEO Mark Zuckerberg. Tesla’s stock, which had soared by 91% between Election Day and mid-December, is now up just 4.8% from its November levels.
The initial post-election surge was fueled by expectations that Musk’s nearly $300 million in contributions to Trump’s campaign and GOP-aligned political action committees would yield regulatory benefits, particularly in advancing Tesla’s self-driving initiatives.
What to know
The $121 billion Musk has lost in recent months surpasses the entire net worth of Steve Ballmer, the former Microsoft CEO and the world’s 10th-wealthiest person, who is valued at $118.9 billion. Musk’s losses also dwarf the fortune of Asia’s richest individual, Mukesh Ambani, whose net worth stands at $89.8 billion.
- Tesla faces significant exposure to trade policies, given that China is its second-largest market and the company depends on Canadian imports for vehicle production. “Tariffs will have an impact on our business and profitability,” Tesla’s Chief Financial Officer Vaibhav Taneja warned in January, highlighting the company’s reliance on global supply chains.
- Musk, who also leads SpaceX and xAI, has seen gains in his private holdings partially offset Tesla’s decline, keeping him $78 billion wealthier than he was on Election Day. However, the broader economic implications of Trump’s tariffs remain uncertain, with analysts cautioning that prolonged trade tensions could further weigh on Tesla’s valuation.
Beyond his business ventures, Musk plays a key role in the Trump administration as head of the Department of Government Efficiency (DOGE), tasked with streamlining federal expenditures.
