According to Derek Saul of Forbes magazine, Elon Musk’s fortune, CEO of Tesla and President Donald Trump’s chief of cost-cutting, has dropped by $116.3 billion from its all-time high of $464 billion on December 17, 2024, per Forbes’ real-time estimates.
Key Points of the Plunge
- Current Value: Musk’s net worth settled at $347.7 billion as of March 4, 2025, after a daily loss of $7.1 billion.
- Tesla Stock: Shares closed at $272, their lowest level since Election Day in November 2024 and 43% below their December peak of $480.
- Macro Context: The decline aligns with the 1% drop in the S&P 500 to 2025 lows, driven by the implementation of Trump’s tariffs on Canada, China, and Mexico.
Impact of Tariffs on Tesla
Tesla, highly exposed to trade tensions, faces significant risks:
- Chinese Market: The company’s second-largest consumer of electric vehicles.
- Supply Chain: Reliance on imported components from Canada and other countries.
Vaibhav Taneja, Tesla’s CFO, warned in January that tariffs would “impact our business and profitability” due to the company’s global dependencies.
Paradoxes and Comparisons
- Political Donations: Musk contributed $300 million to Trump’s campaign and GOP efforts in 2024. Initially, this boosted Tesla shares by 91% between the election and December, but the trend reversed.
- Historical Perspective: The $116 billion lost by Musk exceeds the total fortunes of Bill Gates ($108.1 billion) and doubles that of Mukesh Ambani ($85.6 billion).
Post-Election Balance
Despite recent setbacks, Musk remains $83.3 billion wealthier than on Election Day, buoyed by the valuation growth of his private companies SpaceX and xAI.
By the numbers:
- Post-Election Rally: Tesla shares are up 8% since November, far below the 91% surge at their peak.
- Previous Record: In December, Musk became the first person to surpass a net worth of $400 billion.
The volatility of Tesla reflects not only global trade challenges but also the political turbulence of a figure straddling technological innovation and influence in Washington. With Trump in the White House and tariffs in effect, Musk faces a delicate balancing act: maintaining Tesla’s profitability while managing his role in the current administration.
