Topline
The world’s richest man Elon Musk, who doubles as President Donald Trump’s chief of cost-cutting, took a sizable hit to his net worth as the stock market shudders at Trump’s tariffs, causing shares of Musk’s multinational car company Tesla to flounder.
Elon Musk at the Oval Office last month.
Key Facts
Musk’s net worth fell by $8.8 billion Thursday to $342.8 billion, according to Forbes’ real-time estimates.
Musk’s fortune is now down $121.2 billion from its end-of-day record of $464 billion set Dec. 17, when Tesla stock closed at an all-time high $480 per share.
Down 6% on the day, Tesla stock closed at just above $263, some 45% below its end-of-day record set late last year.
Tesla ended Thursday trading at its lowest share price since Election Day.
The Tesla slump came as the S&P 500 fell 1.8% to a 2025 low as Trump’s tariffs on Canada, China and Mexico ate into investor sentiment.
Musk remains by far the richest person on Earth, leading No. 2 Mark Zuckerberg, the CEO of Meta, by more than $120 billion.
Surprising Fact
To put the $121 billion Musk lost in perspective, the 10th-wealthiest person on the planet, former Microsoft CEO Steve Ballmer, has an estimated net worth of $118.9 billion in total. Asia’s wealthiest person, India’s Mukesh Ambani, has an $89.8 billion fortune.
Big Number
4.8%. That’s how much Tesla shares were up from Election Day to Thursday, a fraction of the 91% rally they enjoyed through Dec. 17. Tesla’s initial post-election surge came as Wall Street bet Musk’s near $300 million donation toward Trump and GOP election efforts would translate into a big win for Tesla, which would especially benefit from lighter regulation for its self-driving initiatives. Musk is still $78 billion wealthier than he was on Election Day, benefiting in part from higher valuations for his private companies SpaceX and xAI.
Key Background
Tesla is particularly sensitive to tariffs as China is the second-largest market for its electric vehicles and the company, like other American automakers, relies on imports from Canada to produce its cars. 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,” Tesla’s chief financial officer Vaibhav Taneja warned in January. Musk is arguably the most important member of Trump’s administration as the head of the Department of Government Efficiency (DOGE).
Crucial Quote
“Musk’s involvement with DOGE and the Trump administration broadly may affect some buyers in the US and Europe, which complicates the setup from a demand perspective,” Baird analyst Ben Kallo wrote in a Thursday note to clients.
Further Reading
ForbesElon Musk Is The Biggest Loser From Trump’s Tariffs So FarBy Derek Saul
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Derek Saul