Tesla’s falling stock prices have resulted in a significant decrease in Elon Musk’s position as the world’s richest man. Forbes reports that Musk experienced a $7.1 billion loss on Tuesday, which reduced his total worth to $347.7 billion and created a $116.3 billion deficit from his December peak of $464 billion.
The stock value of Tesla reached its lowest point since Election Day when it closed at $272 on Tuesday. The stock market decline of more than 1% affects Tesla alongside the S&P 500 index while new Trump administration tariffs against Canada, China, and Mexico play a significant role in this market downturn. The financial results of Tesla have suffered due to its heavy dependence on imports from these three countries.
Tesla CFO Vaibhav Taneja issued a warning during January that tariffs would impact profitability since the company depends heavily on worldwide supply networks. Tesla’s stock value rose by 8% after Election Day, but this increase fell short of its 91% surge that occurred before December’s peak. The investors first thought that Musk’s $300 million donation to Trump’s campaign would lead to less regulation for Tesla, especially in self-driving technology. Stockholders express doubts about Musk’s leadership because he operates between multiple companies such as SpaceX, Neuralink, and xAI.
Shareholders have used social media platforms to pressure Musk into explaining his leadership decisions. The celebrity photographer Jerry Avenaim made a sarcastic comment to Elon Musk where he asked him to present five achievements for Tesla shareholders in a manner similar to Musk’s requirement for weekly progress reports from federal employees.
Tesla owners have started to distance themselves from Musk because of his increasing political connections. Tesla owners in Canada have shown their dissatisfaction by backing tariff increases on the company. Some Tesla investors stick to the mission, but other investors believe Musk’s leadership has turned into a business risk.
