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March 8, 2025

Elon Musk, the world’s richest man and President Donald Trump’s chief cost-cutting officer, suffered a significant financial setback as Tesla’s stock price tumbled. The decline comes in response to mounting concerns over Trump’s newly imposed tariffs on Canada, China, and Mexico, which have shaken investor confidence.

Key Facts

• Musk’s net worth dropped by $8.8 billion on Thursday, bringing his total fortune down to $342.8 billion, according to Forbes’ real-time estimates.
• His wealth has fallen by $121.2 billion from its peak of $464 billion on December 17, when Tesla stock hit an all-time high of $480 per share.
• Tesla shares declined by 6% on Thursday, closing at just above $263—about 45% lower than its peak.
• Tesla’s stock price has now dropped to its lowest level since Election Day.
• The overall stock market was also hit hard, with the S&P 500 falling 1.8% to a new 2025 low.
• Despite the drop, Musk remains the richest person in the world, maintaining a lead of more than $120 billion over the second-richest individual, Meta CEO Mark Zuckerberg.

Surprising Fact

To put Musk’s $121 billion loss in perspective, the world’s 10th-richest person, Steve Ballmer (former Microsoft CEO), has an estimated total net worth of $118.9 billion. Meanwhile, Asia’s wealthiest individual, Mukesh Ambani of India, has a fortune of $89.8 billion.

4.8%

That’s how much Tesla shares have risen since Election Day—a sharp contrast to the 91% surge they enjoyed through December 17. Tesla’s earlier stock rally was largely fueled by Wall Street’s optimism over Musk’s near $300 million donation to Trump’s election campaign, which was expected to translate into policy advantages for Tesla, particularly in self-driving regulations.

Despite recent losses, Musk remains $78 billion richer than he was on Election Day, thanks in part to rising valuations of his other companies, SpaceX and xAI.

Key Background

Tesla is particularly vulnerable to tariffs as China is its second-largest market. Additionally, Tesla—like many other American automakers—relies on Canadian imports for essential parts. In January, Tesla’s Chief Financial Officer Vaibhav Taneja warned that tariffs could impact the company’s business and profitability, stating that Tesla remains "highly dependent on global supply chains."

Musk holds a critical position in Trump’s administration as the head of the Department of Government Efficiency (DOGE), making him one of the most influential figures in the White House.

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.” — Ben Kallo, Baird Analyst

Source: Forbes, Financial Markets Reports