Elon Musk fortune sinks $9 billion as Tesla shares tumble
Market turmoil erodes Musk’s fortune amid Tesla stock slide
Elon Musk, the world’s richest man and a close economic adviser to President Donald Trump, saw his net worth tumble by $9.2 billion on Thursday as Tesla shares plummeted.
The drop comes amid broader market turbulence driven by Trump’s tariffs on Canada, China, and Mexico, which have rattled investor confidence. According to Forbes' real-time estimates, Musk’s fortune now stands at $342.5 billion—down $121.5 billion from its peak of $464 billion reached on December 17, 2024, when Tesla stock hit an all-time high of $480 per share, reports Forbes.
By mid-afternoon Thursday, Tesla shares were trading just above $260—47% below their peak and marking the lowest price since Election Day. The sharp decline in Tesla’s value contributed to a broader market selloff, with the S&P 500 falling more than 2% to hit a 2025 low. Despite this setback, Musk remains the world’s wealthiest individual, holding a $120 billion lead over the second-richest person, Meta CEO Mark Zuckerberg.
Broader Impact and Context
The $121.5 billion Musk has lost since December surpasses the total net worth of the 10th-richest person in the world, former Microsoft CEO Steve Ballmer, whose fortune stands at $119.1 billion. It also far exceeds the wealth of Asia’s richest individual, Mukesh Ambani of India, who has a net worth of $89.8 billion.
Tesla’s current struggles represent a stark contrast to the company’s post-election surge, when its shares rose 91% by December 17. Much of that rally was driven by optimism surrounding Musk’s close ties to Trump and his substantial $300 million donation to Trump’s campaign and Republican efforts. Investors anticipated that the administration’s pro-business stance and potential deregulation would favor Tesla’s self-driving initiatives.
Despite the downturn, Musk’s wealth remains $78 billion higher than it was on Election Day, buoyed in part by rising valuations of his private companies, including SpaceX and artificial intelligence startup xAI. However, the continued impact of Trump’s tariffs and market uncertainty could shape the trajectory of Musk’s fortune and Tesla’s performance in the months ahead.
Recently, Elon Musk’s artificial intelligence startup xAI is in discussions to raise $10 billion in fresh funding, a move that would boost the company’s valuation to $75 billion.
