Elon Musk, the 53-year-old CEO of Tesla, remains the world’s wealthiest individual, but his electric vehicle company is facing significant challenges. Since mid-December, Musk’s net worth has dropped by more than $100 billion as Tesla’s stock continues its downward slide.
On February 25th, Tesla shares dropped another 8%, closing at $302.80, bringing the stock’s year-to-date decline to 25%. This marks a significant loss for the company, which had once reached a market capitalization of over $1 trillion, but now finds itself stripped of that status.
Tesla’s struggles are not limited to the stock market. Data shows that Tesla’s vehicle registrations in Europe fell by 45% in January compared to the same period last year, despite an overall increase in electric vehicle sales across the continent. Sales in China also appear to be on the decline, signaling growing challenges for Tesla in these key markets.
Some analysts speculate that Musk’s deep involvement in U.S. politics, particularly his connection to the Trump administration, may be influencing European buyers’ decisions. With U.S.-Europe relations currently strained, Tesla could be facing backlash from European consumers who are distancing themselves from the brand due to Musk’s political affiliations.
Others believe that investors are simply cashing out after Tesla’s massive gains over the past year. Despite the recent slump, Tesla’s stock has risen by 52% over the past 12 months. However, Gary Black, managing partner at The Future Fund investment group, warned that Tesla shares could face further declines this year, especially given the company’s uncertain outlook for 2025 vehicle deliveries.
Musk’s influence extends well beyond Tesla, with leadership roles at SpaceX, X (formerly Twitter), Neuralink, and his AI company xAI. Though some have raised concerns about Musk’s many ventures, Tesla investors have long supported his ability to balance his various responsibilities, often crediting his leadership for the company’s past successes.
However, not all of Musk’s projects have been well-received. The October unveiling of Tesla’s robotaxi concept, dubbed “I, Robot,” failed to impress many investors and analysts, who were underwhelmed by the event. The lackluster reception led to a 15% drop in Tesla’s stock, impacting Musk’s net worth, as he owns approximately 13% of the company.
Additionally, Musk and Tesla are facing a lawsuit from the production company behind Blade Runner 2049, which claims the robotaxi design infringes on its intellectual property, adding further complications for the company.
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Despite these setbacks, Musk continues to push forward with Tesla’s plans. The company is rolling out new models to adapt to shifting consumer preferences, and it is expanding its full self-driving technology into China. Gary Black remains optimistic about Tesla’s future, highlighting the potential for the company’s new affordable vehicle and advancements in unsupervised autonomy to drive future sales.
As of now, Musk’s net worth stands at $379.9 billion, still a substantial $144 billion more than Meta CEO Mark Zuckerberg, the second-richest person in the world. While the recent slump in Tesla’s stock has impacted Musk’s wealth, his leadership and influence across multiple industries continue to keep him at the top of the global wealth rankings.
