Elon Musk’s Fortune Endures: Why Tesla’s Stock Drop Won’t Shake His Wealth
Elon Musk, the CEO of Tesla and SpaceX, experienced a sharp decline in his net worth, dropping by $29 billion on Monday, March 10. According to the Bloomberg Billionaire Index, Musk’s total wealth stood at $301 billion, marking a 6.7% decrease from his previous $330 billion valuation last week. The drop was primarily due to a significant 15% decline in Tesla’s stock price on March 10, marking its largest single-day fall since September 2020.
Tesla’s stock has been on a downward trend, losing 55% of its value since reaching its peak in December. Bloomberg reports that Musk’s net worth has fallen by $132 billion this year, representing a decline of over 30%.
Why the Decline in Tesla Stocks May Not Worry Elon Musk
Despite the sharp drop in Tesla’s stock, Elon Musk remains the world’s richest man. His wealth is not solely dependent on Tesla but also tied to other major ventures such as SpaceX, The Boring Company, and X (formerly Twitter). SpaceX, in particular, has been increasing in valuation, helping to counterbalance Tesla’s losses. Additionally, as the largest shareholder of Tesla, Musk’s fortune fluctuates with market movements but does not vanish unless he sells shares.
Billionaire rankings shift daily based on stock market movements, and Musk’s wealth follows this trend. The US stock market recently shed over $1.7 trillion in value, illustrating the broader impact of market fluctuations on billionaire rankings.
Possible Reasons Behind Tesla’s Declining Stock
Tesla’s stock has been falling consistently since Musk took on the role of leading the Department of Government Efficiency (DOGE), an initiative focused on cutting federal spending and reducing the government workforce. Some Tesla investors have expressed concerns that Musk’s involvement in government activities may be diverting his attention from Tesla.
Furthermore, Tesla facilities have faced multiple security threats, including vandalism and gunfire incidents. Authorities suggest that these attacks might be linked to Musk’s political engagements and government-related initiatives. While former President Donald Trump has claimed that Musk is spearheading a government office for cost-cutting measures, the White House and Justice Department have clarified that another official holds that position.
Elon Musk Responds to Tesla’s Single-Day Stock Drop
In response to a post on X highlighting Tesla’s biggest single-day stock losses, Musk reassured followers, stating, “It will be fine long-term.”
His confidence suggests that, despite short-term fluctuations, he remains optimistic about Tesla’s future and his overall financial standing.
