Elon Musk’s Net Worth Drops Amid Tesla Stock Turmoil

NEW YORK, NY — Elon Musk, the world’s richest individual and CEO of Tesla, saw his net worth plummet by $8.8 billion to $342.8 billion amid ongoing stock market volatility caused by President Donald Trump’s tariffs.

The decline occurred Thursday as Tesla’s stock dropped 6%, closing at just above $263 a share, a significant 45% decrease from its record high of $480 per share set in December 2024. Musk’s wealth is now down $121.2 billion from its peak, marking a stark contrast to the $464 billion valuation he reached shortly before the fall.

The plunge in Tesla’s shares coincided with a 1.8% decline in the S&P 500 index, as investor sentiment weakened due to the potential impact of Trump’s tariffs on imports from Canada, China, and Mexico. Tariffs are particularly concerning for Tesla, which depends on foreign supplies for its manufacturing operations. The company’s chief financial officer, Vaibhav Taneja, commented in January, “Tariffs will have an impact on our business and profitability considering Tesla is still very reliant on parts from across the world for all our businesses.”

Despite this setback, Musk retains a significant lead over the second-richest person, Mark Zuckerberg, by more than $120 billion. To provide perspective, the $121.2 billion Musk lost is almost equivalent to the total net worth of former Microsoft CEO Steve Ballmer, estimated at $118.9 billion.

Even with the drastic decline, Musk is still $78 billion wealthier than he was on Election Day, attributed partly to the increasing valuations of his other ventures, including SpaceX and xAI. In the immediate aftermath of the election, Tesla shares surged by 91%, as Wall Street anticipated favorable conditions under the Trump administration.

An analyst from Baird, Ben Kallo, suggested that Musk’s substantial ties to the Trump administration might influence demand for Tesla vehicles. “Musk’s involvement with DOGE and the Trump administration broadly may affect some buyers in the U.S. and Europe,” Kallo noted in a report to his clients.

In response to the recent turbulence, Musk has also faced protests against his leadership at Tesla, with multiple demonstrations taking place across various cities. Protesters have expressed frustration with job cuts and the broader impact of Trump’s policy decisions. On Saturday, demonstrators gathered outside a Tesla dealership in New York City, chanting, “We need clean air, not another billionaire.”