Tesla Stock Has Fallen Nearly 40% From December Peak, Wiping Almost $137 Billion From Elon Musk's Wealth

Tesla TSLA and SpaceX CEO Elon Musk‘s net worth saw a sharp decline of $137 billion from its peak on December 18.

What Happened: According to the Bloomberg Billionaires Index. Musk’s net worth plummeted to $349 billion from its peak of $486 billion on December 18, wiping off $137 billion worth of his wealth.

Tesla, which makes up more than half of Musk’s wealth, was particularly impacted due to a nearly 50% drop in its European sales in January. Factors such as potential tariffs and ongoing federal cost-cutting efforts led to this financial setback. 

Musk owns approximately 13% of Tesla, according to the company’s 2024 proxy statement. Meanwhile, SpaceX is valued at nearly $350 billion based on a December 2024 tender offer. Elon Musk holds approximately 42% of the privately held company through a trust, according to a December 2022 filing with the Federal Communications Commission and Bloomberg’s dilution calculations, with a 5% private company discount applied.

Furthermore, Musk is also estimated to own around 79% of X Corp, which he acquired for $44 billion in 2022. Formerly known as Twitter, the company’s value has since declined by approximately 69%, according to the carrying value assigned by investor Fidelity Blue Chip Growth Fund in its December 2024 filing.

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Why It Matters: Tesla’s market capitalization fell below the symbolic $1 trillion mark on Tuesday as shares plunged 8.39% to $302.80, bringing the company's valuation to $948.81 billion. Musk’s popularity declined in Europe as he started getting more involved in domestic politics.

Musk’s involvement in the Department of Government Efficiency (DOGE), a Trump administration initiative aimed at reducing government spending and waste, has been met with controversy. His team’s actions, including the rapid layoffs of federal probationary employees and the implementation of tactics used at X Corp, formerly Twitter, have faced widespread criticism and legal challenges.

Tesla, the electric vehicle maker, first reached the trillion-dollar milestone on Nov. 8, two days after President Donald Trump‘s election victory. Since then, Tesla has lost significant ground, with shares down more than 39% from their Dec. 17 high of $479.86 and falling more than 28% since Trump's Jan. 20 inauguration.

TSLA stock was up 2.40% in Thursday premarket, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.