BUSINESS
Elon Musk’s net worth dropped below USD 400 billion as Tesla shares fell 27% amid weak sales in Germany and China.
Elon Musk’s net worth has fallen below USD 400 billion for the first time in two months. The decline is mainly due to a sharp drop in Tesla’s stock price, which has fallen 27% since mid-December. The electric car company had reached an all-time high during that period, as investors hoped that Musk’s connection to former U.S. President Donald Trump would benefit Tesla’s future.
According to the Bloomberg Billionaires Index, Musk’s wealth peaked at USD 486.4 billion on December 17, following Trump’s election victory. Since then, Tesla’s stock has struggled, particularly last week, when it had its worst performance since early October. The company’s shares dropped 11% after reporting disappointing monthly sales figures.
Tesla’s sales in Germany fell by 59%, hitting their lowest level since 2021. Meanwhile, sales in China declined by 11.5% compared to the previous year due to tough competition from Chinese automaker BYD. On Monday, Tesla’s shares dropped for the fourth consecutive trading day, falling another 3% to USD 350.73.
Musk’s Focus on Politics
Musk’s political stance has played a big role in Tesla’s stock movements. After Trump took office, Musk has been focusing heavily on Washington, working on various cost-cutting initiatives. He has led efforts to reduce government spending, including cutting USAID funding and reviewing the Treasury Department’s expenses. Additionally, he has backed a plan to downsize the federal workforce by offering employees eight months of pay in exchange for voluntary resignations.
However, despite investors’ hopes, the Trump administration has yet to introduce policies that would directly benefit Tesla. There have been no updates on electric vehicle tax benefits or self-driving car regulations, both of which Musk sees as crucial for Tesla’s future. Analysts at investment firm Robert W. Baird recently expressed doubts about Tesla’s robotaxi business after the company failed to provide clear guidance on production volume in its latest earnings report.
Musk’s Wealth Shift
Although Musk’s Tesla shares still make up the largest portion of his wealth, their recent decline has changed the balance of his fortune. His 42% stake in SpaceX is currently worth USD 136 billion, making it a significant part of his overall net worth. His real-time net worth is USD 381.5 billion, as per Forbes. Meanwhile, his other companies, including artificial intelligence startup xAI, have been securing large investments.
Musk is also involved in a major business deal. According to the Wall Street Journal, he is leading a group of investors attempting to buy OpenAI, the company behind ChatGPT, for nearly USD 95 billion. However, OpenAI’s CEO, Sam Altman, rejected the offer in a post on Musk’s social media platform, X.
Despite these setbacks, Musk remains one of the richest people in the world, with a fortune of USD 394.6 billion. However, with Tesla’s struggles and increasing competition, his position in the billionaire rankings could see more changes in the coming months.
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