The billionaire’s net worth dropped by over $100 billion as Tesla faced its worst day on Wall Street in years
Elon Musk’s Net Worth Plummets by $144 Billion Amid Tesla’s Stock Decline and Political Entanglements
Elon Musk, the billionaire entrepreneur and CEO of Tesla, has witnessed a staggering drop in his net worth, losing over $144 billion since December, according to a recent report. On Monday, March 10, Tesla’s stock plummeted by more than 15%, marking its lowest value since October 23. Forbes reported that the dramatic decline, amounting to roughly $127 billion, was one of the most significant losses on Wall Street that day. The decline was triggered by investor reactions to President Donald Trump’s new tariffs, adding to Tesla’s growing financial woes. As of the time of publication, Musk’s net worth stood at approximately $319.6 billion, according to Forbes.
This significant downturn marks a stark contrast to Tesla’s soaring stock prices following the last presidential election. However, Tesla shares have since seen a slight recovery, rising 8.35% by Wednesday, March 12. The fluctuation highlights the volatility surrounding Tesla, particularly in light of Musk’s increasing political involvement, which has sparked debate among industry experts and investors alike.
Political Involvement and Its Impact on Tesla
Experts suggest that Musk’s deep entanglement in politics has played a major role in Tesla’s declining market value. In addition to leading Tesla and SpaceX, Musk currently serves as the head of the White House’s Department of Government Efficiency. This federal agency, established by a recent executive order from President Trump, aims to modernize governmental technology and software to enhance efficiency and productivity.
Business analysts argue that Musk’s close ties with the Trump administration have negatively affected Tesla’s brand perception on a global scale. Abigail Wright, a consultant at the business advisory firm Chamber of Commerce, told Newsweek, “Elon Musk’s involvement in politics has significantly impacted Tesla’s reputation. Instead of focusing on innovation and growth, he has become a polarizing figure, alienating key international markets where political sentiment influences consumer decisions.”
Wright further added, “His association with political controversies, ongoing trade tensions, and his close ties to Trump have contributed to Tesla’s stock decline. Had he directed his energy towards advancing space exploration and technological breakthroughs instead of politics, we might be witnessing revolutionary achievements rather than financial losses and brand damage.”
Trump Defends Musk Amid Calls for Tesla Boycott
Despite the controversy surrounding Musk, President Trump publicly defended him in the wake of Tesla boycotts. On March 11, Trump declared that such boycotts were “illegal” and expressed his support for the embattled billionaire.
“I’m going to buy a brand-new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American,” Trump posted on his social media platform, Truth Social, on Tuesday, March 11. “Why should he be punished for putting his tremendous skills to work in order to help MAKE AMERICA GREAT AGAIN???”
Trump’s endorsement came just as Musk faced mounting criticism from analysts who argue that he has neglected his duties as Tesla’s CEO. MarketWatch reported that Wedbush analyst Dan Ives, a longtime supporter of Musk and Tesla, urged him to take a more active role in stabilizing the company.
“Musk needs to step up as Tesla CEO at this critical juncture,” Ives stated, emphasizing the urgency of his leadership. He pointed out that Musk has been noticeably absent from Tesla factories and manufacturing facilities in recent months, exacerbating investor concerns and fueling stock volatility.
Compounded Challenges for Musk and His Companies
Musk’s financial and reputational struggles extend beyond Tesla. His social media platform, X (formerly Twitter), experienced widespread outages on March 10, compounding his challenges. Additionally, SpaceX, his aerospace venture, is still recovering from two failed test launches that scattered debris over parts of the Caribbean and Florida, raising concerns about the company’s operational setbacks.
Adding to his woes, a federal judge ruled on March 10 that the Department of Government Efficiency, which Musk oversees, must make its records public. This decision marks a significant shift for the agency, which has been criticized for its lack of transparency since its inception.
Future Outlook: Can Musk Rebound?
Despite these setbacks, Musk remains optimistic about the future. In response to the stock market downturn, he took to X, posting a short but confident message: “It will be fine long-term.” However, whether his optimism aligns with reality remains uncertain, as Tesla continues to navigate financial instability and political turbulence.
With investors closely watching his next moves, analysts suggest that Musk must shift his focus back to Tesla’s core mission—innovative automotive technology and sustainable energy solutions. Only time will tell if Musk can recover from these losses and restore confidence in Tesla’s future.
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