Elon Musk’s net worth dropped by $8.8 billion to $342.8 billion, reflecting a $121.2 billion decline since December’s peak of $464 billion. Tesla stocks fell 6% on a day when the S&P 500 dropped 1.8%, primarily due to President Trump’s tariffs impacting market sentiment. Tesla shares closed at about $263, the lowest since Election Day and 45% below their previous high. Musk, still the world’s richest person, is significantly wealthier than second-place Mark Zuckerberg by over $120 billion. Analysts warn that tariffs could impact Tesla’s profitability and consumer demand in the U.S. and Europe.
Topline
The world’s wealthiest individual, Elon Musk, who also serves as President Donald Trump’s key advisor on budget reductions, experienced a significant decline in his net worth as the stock market reacted negatively to Trump’s tariffs, leading to a drop in the share price of Musk’s global automotive enterprise, Tesla.
Elon Musk in the Oval Office last month.
Key Facts
Musk’s fortune decreased by $8.8 billion on Thursday, bringing his net worth to $342.8 billion, as reported by Forbes’ real-time tracking.
Musk’s net worth has declined by $121.2 billion from the record high of $464 billion reached on December 17, when Tesla shares closed at a peak of $480 each.
After a drop of 6% on the day, Tesla shares finished just above $263, approximately 45% lower than the record price set late last year.
On Thursday, Tesla’s stock ended trading at its lowest price since Election Day.
The decline in Tesla’s stock occurred as the S&P 500 dropped 1.8% to a 2025 low, as Trump’s tariffs on Canada, China, and Mexico dampened investor confidence.
Musk continues to be the richest person globally, leading No. 2 Mark Zuckerberg, CEO of Meta, by over $120 billion.
Surprising Fact
For perspective, the $121 billion lost by Musk is greater than the total net worth of the 10th richest person in the world, former Microsoft CEO Steve Ballmer, who is estimated to have $118.9 billion. Meanwhile, Asia’s richest individual, India’s Mukesh Ambani, holds an $89.8 billion fortune.
Big Number
4.8%. That’s the increase in Tesla shares from Election Day to Thursday, which is minimal compared to the 91% rally they experienced by December 17. The initial post-election rise in Tesla shares was fueled by Wall Street’s optimism that Musk’s nearly $300 million contribution to Trump and GOP campaign efforts would lead to favorable outcomes for Tesla, particularly in terms of eased regulations on self-driving technology. Musk is still $78 billion richer than he was on Election Day, partly due to increased valuations of his private ventures, SpaceX and xAI.
Key Background
Tesla is particularly vulnerable to tariff impacts as China represents its second-largest market for electric vehicles, and like many American auto manufacturers, it depends on imports from Canada for car production. Tariffs “will affect our business and profitability,” Tesla’s chief financial officer Vaibhav Taneja stated in January, noting Tesla’s significant reliance on global parts. Musk arguably plays a crucial role in Trump’s administration as the leader of the Department of Government Efficiency (DOGE).
Crucial Quote
“Musk’s involvement with DOGE and the broader Trump administration could influence buyer sentiment in the US and Europe, complicating demand dynamics,” noted Baird analyst Ben Kallo in a memo to clients on Thursday.
Further Reading