Priyanka Tiwari
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Elon Musk, CEO of Tesla and SpaceX, has seen his net worth fall below $300 billion—his lowest valuation since the 2024 U.S. presidential election. This sharp decline comes just four months after Musk became the first individual to surpass the $400 billion mark in personal wealth.
According to the Bloomberg Billionaires Index, Musk lost $4.4 billion on Monday alone, pushing his net worth down to $297.8 billion. Last week, he suffered a $31 billion loss over just two days, bringing his total 2025 losses to an estimated $134.7 billion.
Breakdown of the Financial Hit
The steep drop in Musk’s net worth is tied to significant declines in the valuation of Tesla and SpaceX, as well as broader geopolitical instability.
Tesla stock, which forms over 60% of Musk’s total wealth, dropped significantly, erasing more than $13 billion in value.
SpaceX’s internal valuation reportedly declined during its latest funding round, as rising aerospace component costs and market uncertainty impacted investor confidence.
Trump-era tariffs and retaliatory measures from other countries have disrupted global markets and increased costs across Musk’s businesses, triggering investor concern.
Tesla’s Exposure to Global Tariffs
Tesla’s reliance on international manufacturing and supply chains makes it particularly vulnerable to new tariffs. While the company assembles vehicles in the U.S., it imports vital components—including batteries and electronics—from countries like China and across the EU.
Tariffs on Chinese imports have inflated production costs.
Tesla’s Shanghai Gigafactory, which exports EVs to Europe and Asia, faces new trade barriers.
The Berlin Gigafactory depends on EU-sourced materials, now also subject to U.S. tariffs.
These disruptions are squeezing Tesla’s margins and could reduce consumer demand due to higher vehicle prices.
Political Fallout Adds to Tesla's Struggles
Musk’s close ties to President Donald Trump have also played a role in Tesla’s declining public perception. Musk’s appointment as head of the controversial "Department of Government Efficiency" (DOGE) has attracted criticism for triggering massive federal workforce cuts and questions about accountability.
Musk also reportedly donated over $270 million to Trump’s 2024 campaign. His alignment with the administration has led to backlash, including calls for consumer boycotts and even acts of vandalism against Tesla vehicles.
Can Tesla Recover? Analysts Are Divided
Some analysts see a possible path to recovery if Tesla shifts focus to domestic production and reduces reliance on volatile global markets. Recovery could begin by late 2025, they say.
Others remain cautious, warning that:
A global EV price war is intensifying.
Investor confidence in Tesla’s aggressive growth projections may wane.
Continued political entanglements could further damage the brand.
With economic and political uncertainty looming, Tesla's road ahead remains uncertain.
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