1 week Ago By Samannay Biswas
According to the Bloomberg Billionaires Index, Musk's net worth dropped $4.4 billion on the same day his company stocks continued tumbling. His net worth now stands at around $297.
8 billion. On Monday, another $4.4 billion was erased from his net worth after Tesla shares, which fell by about 8.
90 percent on Monday, weighed on his wealth. Musk now ranks as the sixth-biggest loser on the Bloomberg rankings of 500 richest people in the world, which collectively lost $271 billion on Monday—marking the third-largest single-day loss ever recorded by the index. The financial carnage has emerged from shifting winds of economic uncertainty due to tariffs announced by the former president, Donald Trump.
In the past two trading days, Musk has already lost $31 billion—$134.7 billion year-to-date. Tesla's been riding a wave since election day, and everything showed some early promise.
Now, the company has become something of a lightning rod for criticism because of Musk's advisory role in the inner circle of the former president. It has reportedly also been facing consumer backlash, with incidents of vandalism directed against its cars across the U.S.
and Europe. Throw in Musk's comments on political matters and a controversial presence on social media, and some of his customers are turned off." On Monday, Tesla shares plunged as much as 9.
2 percent to reach $217.41 amid concerns of weak first-quarter deliveries-good enough to mark the weakest recorded quarterly result since 2022. The broader macroeconomic sentiment is weighing its shares very heavy too.
Since December, the EV manufacturer has been trading at about 55 percent less true valuation. Musk's brother, Kimbal Musk, criticised current tariffs arguing, "Even if jobs are brought back onshore through tariffs, prices will stay high because we’re simply not as efficient at producing everything." Elon Musk too has openly advocated instituting a free trade zone with zero tariffs between the US and Europe.
Howard Lutnick, the Secretary of Commerce, on the other hand, showed an optimistic disposition, saying "It'll never be this cheap again," in reference to Tesla's stock valuation, despite all the sanguine sell-off. Meanwhile, analysts have cut forecasts for Tesla's sales and earnings because of reputation risk and macroeconomic constraints. In turn, this downturn stresses how more and more fragile is Musk's empire, perhaps the most dependant on public sentiment and political happenings.
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