Musk's net worth hits below $400bln for first time in 2025
3 Min Read
The drop in the tech tycoon's net worth comes after Tesla stocks, which make up 60% of the billionaire's shares, went down 27% after a lousy monthly sales report.
-
Elon Musk gestures while speaking at an indoor presidential inauguration parade event in Washington, Monday, Jan. 20, 2025 (AP)
Elon Musk's net worth dropped below 400% for the first in two months after a 27% drop in Tesla shares, which make up 60% of his wealth, brought him down from an all-time high of $486.4 billion back in mid-December.
Tesla had its worst week since early October, with shares falling 11% after reporting a decline in sales, with deliveries in Germany dropping to their lowest levels since 2021, while sales in China fell 11.5% compared to last year due to competition from BYD Co.
Musk's closeness to Trump had previously boosted the stock to an all-time high in the hope that the Electric Vehicle company would benefit from things like tax subsidies on electric vehicles and formalized standards for electric vehicles, both of which haven't happened yet.
However, Musk's politics are affecting Tesla sales in Europe, with the 54-year-old billionaire endorsing the AfD, a far-right German political party, saying, prior to the drop in sales, they're the only party that could save Germany.
Musk, Trump's right hand man
Musk and Trump have been side-to-side from Trump's presidential campaign to his inauguration on January 20, with Musk making several appearances at the US president's rallies and events.
Musk is the largest political donor of the 2024 election cycle, according to a recent Washington Post report, pouring a total of $288 million into Donald Trump's presidential campaign and solidifying Musk's influence in Trump's circle with the former appointed as the head of the Department of Government Efficiency (DOGE).
Prior to that, Musk pledged to contribute $45 million dollars a month to Trump's political campaign, pouring the funds into a Super PAC dedicated to increasing voter turnout.
Musk's DOGE has been a magnet of controversy, getting sued minutes after Trump's inauguration for violating federal transparency laws, barring Democratic lawmakers from entering the headquarters of governmental departments DOGE shut down, and more.
DOGE agents were given access to sensitive records of millions of federal employees, including some in very sensitive positions in the Treasury and State Departments, raising fears of misuse and security breaches.
