Elon Musk, the CEO of Tesla and SpaceX, has seen a significant decline in his net worth. As of recent reports, his net worth has dropped by $137 billion from its peak on December 18, falling from $486 billion to $349 billion.
What Led to the Decline?
The decline in Musk’s net worth is largely attributed to the poor performance of Tesla stock, which has plummeted by nearly 40% since its December high. The electric vehicle maker’s stock was particularly affected by a significant drop in European sales, with a nearly 50% decline in January. Factors such as potential tariffs and ongoing federal cost-cutting efforts have contributed to this financial setback.
Musk’s Holdings
Musk owns approximately 13% of Tesla, according to the company’s 2024 proxy statement. Additionally, he holds around 42% of SpaceX, a privately held company valued at nearly $350 billion. Musk is also estimated to own around 79% of X Corp, formerly known as Twitter, which he acquired for $44 billion in 2022. However, the company’s value has since declined by approximately 69%.
Impact on Tesla’s Market Capitalization
Tesla’s market capitalization fell below the $1 trillion mark, with shares plunging 8.39% to $302.80. This brings the company’s valuation to $948.81 billion. Musk’s involvement in domestic politics, particularly his role in the Department of Government Efficiency (DOGE), has been met with controversy and has likely contributed to the decline in his popularity and Tesla’s stock performance.
Recent Developments
Musk’s team’s actions, including rapid layoffs of federal probationary employees and the implementation of tactics used at X Corp, have faced widespread criticism and legal challenges. Tesla’s stock was up 2.40% in Thursday premarket, according to recent data.
Key Takeaways
- Elon Musk’s net worth has declined by $137 billion from its peak on December 18.
- Tesla stock has plummeted by nearly 40% since its December high.
- Musk owns approximately 13% of Tesla and 42% of SpaceX.
- X Corp, formerly Twitter, has seen a decline in value of approximately 69% since Musk’s acquisition in 2022.
- Tesla’s market capitalization has fallen below the $1 trillion mark, with shares plunging 8.39% to $302.80.