Elon Musk, CEO of Tesla and SpaceX, saw his net worth drop by $29 billion on Monday i.e. March 10. According to the Bloomberg Billionaire Index, Musk’s total worth stood at $301 billion, a 6.7% fall from $330 billion last week. The drop in the tech billionaire’s net worth was driven by a decline in Tesla’s stock price, which fell 15% on March 10—its biggest single-day drop since September 2020.
Tesla’s stock has fallen 55% from its December high. According to Bloomberg, Musk’s net worth has dropped by $132 billion, or over 30%, this year.
Why decline in Tesla stocks may not worry Elon Musk
Falling Tesla stock does not necessarily mean Elon Musk is losing his title as the world’s richest man. According to Bloomberg, Elon Musk remained the wealthiest person in the world even after losing $29 billion yesterday. This is because his net worth is tied not just to Tesla but also to other major companies like SpaceX, The Boring Company, and X (formerly Twitter). SpaceX, in particular, has been growing in valuation, offsetting Tesla’s decline. Further, despite Tesla’s stock fluctuations, Musk remains the largest shareholder, meaning his wealth moves with the market but doesn’t disappear unless he sells shares.
Billionaire net worth rankings shift daily with stock market movements, and Musk’s wealth is no exception. Recently, the US stock market lost over $1.7 trillion in value, highlighting how broader market trends impact wealth calculations.
Possible reasons behind declining Tesla stocks
Tesla’s stock has been declining each week since Musk took on the position of leading the Department of Government Efficiency (DOGE), which is overseeing efforts to cut federal spending and reduce the government workforce.
Tesla investors have raised concerns about Elon Musk’s involvement in government activities. Musk has been working with the federal government on efforts to cut waste and reduce spending, which some investors fear could be taking time away from his leadership at Tesla.
Additionally, Tesla facilities have been targeted in multiple attacks, including incidents of vandalism and gunfire. Authorities have suggested that these attacks may be linked to Musk’s political activities and government involvement.
While former President Donald Trump has suggested Musk is leading a government office focused on these initiatives, the White House and Justice Department have stated that another official holds that role.
Elon Musk responds to Tesla’s single-day stop drop
Replying to a post on X that noted Tesla’s biggest single-day stop drops in history, Musk wrote “It will be fine long-term”.
In an interview with Fox Business, the tech billionaire stated that managing his businesses has been challenging. He also mentioned that he expects to continue his role in the Trump administration for another year.
