2025-02-11 16:41:00
Elon Musk’s fortune has dropped below $400 billion for the first time in two months, driven by a sharp decline in Tesla’s stock price. The company has been facing a tough stretch, with its shares plunging 27% since their peak in mid-December.
Tesla’s Sales Slump Hits Hard
Tesla’s troubles aren’t just about stock prices—the company’s sales numbers are also taking a hit. In Germany, Tesla deliveries have nosedived by a staggering 59%, while China, one of its most critical markets, has seen an 11.5% decline. These disappointing sales figures have led to Tesla’s worst trading week since October, with shares tumbling 11% in just the past week.
Musk’s Political Moves Aren’t Helping Investors
Musk has been making waves in politics in Trump’s second term. He is focusing on cutting government spending through his Department of Government Efficiency (DOGE). While he’s been vocal about reducing the federal workforce and streamlining operations, investors aren’t seeing these moves as a reason to buy into Tesla. His political ambitions and cost-cutting measures haven’t done much to restore market confidence in the electric vehicle giant.
Despite Tesla’s struggles, Musk’s overall net worth remains tied to the company. He’s currently worth $394.6 billion, with Tesla still accounting for a massive chunk of his wealth. However, his stake in SpaceX is becoming increasingly valuable, now estimated at $136 billion—almost rivaling his Tesla holdings.
Could the Trump Administration Save Tesla?
Some investors are holding out hope that the Trump administration might introduce policies that could benefit Tesla, such as changes to electric vehicle tax incentives. If that happens, Tesla could see a much-needed rebound. However, with economic uncertainty and unpredictable government policies, Tesla’s future remains anything but certain.
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