Tesla’s stock has been facing a downward trend, particularly since Elon Musk took on a new role with the government.
On March 10, Tesla’s stock fell by 15%, marking its biggest single-day drop since September 2020.
The decline led to Musk’s net worth decreasing by $29 billion, bringing it down to $301 billion from $330 billion the previous week. Year-to-date, his wealth has decreased by over 30%, or approximately $132 billion, as per the Bloomberg Billionaire Index.
Despite this, Musk continues to hold the title of the world’s richest person. His financial standing is supported by his ownership stakes in other major ventures, such as SpaceX, The Boring Company, and X (formerly Twitter). The increasing valuation of SpaceX, in particular, has helped balance out losses from Tesla’s stock.
Why Tesla’s Stock Decline Doesn’t Threaten Musk’s Wealth
Even though Tesla’s stock has dropped significantly—falling 55% from its December peak—Musk’s financial dominance remains intact. His fortune is tied not just to Tesla but also to SpaceX, which continues to experience strong growth. Moreover, since Musk is Tesla’s largest shareholder, his wealth is tied to stock market movements but does not vanish unless he sells shares.
Stock market fluctuations routinely impact billionaire wealth rankings. The recent loss of $1.7 trillion in the U.S. stock market underscores the volatility of net worth calculations. Musk’s confidence in Tesla’s future remains strong, as evidenced by his response to the recent drop, stating, “It will be fine long-term.”
Concerns Over Musk’s Government Role and Tesla’s Security Threats
Since taking on a leadership position in the Department of Government Efficiency (DOGE), Musk’s increased government involvement has raised investor concerns. Some Tesla shareholders worry that his federal commitments could divert attention from the company’s operations.
Additionally, Tesla facilities have been targeted by multiple attacks, including incidents of vandalism and gunfire. Authorities suspect that these attacks may be linked to Musk’s political activities and government role. While former President Donald Trump has claimed that Musk is leading government efficiency initiatives, the White House and Justice Department have clarified that another official holds the position.
