Topline
Tesla stock’s steep losses in early 2025 have cut tens of billions of dollars away from the net worth of the world’s richest man, the electric vehicle maker’s CEO Elon Musk, whose outspoken role in President Donald Trump’s administration draws questions about what it may mean for Tesla.
Musk talks at an October rally for Trump in New York.
Key Facts
Shares of Tesla declined 6.3% to $328.50 in Tuesday trading, closing at its lowest share price since Nov. 15.
Catalyzing Tuesday’s drop were advancements in autonomous driving from its Chinese EV rival BYD and a skeptical note from Oppenheimer analysts led by Colin Rusch warning Musk’s “political activity risks consumer backlash.”
The Oppenheimer note, which referenced “concerning” January sales in China and Europe, comes a day after Stifel analysts led by Stephen Gengaro similarly warned “the negative downturn in consumers' perception of Elon Musk could result in a ‘headwind to sales’ for Tesla,” which inspired a 3% loss in Monday trading for Tesla shares.
Tesla stock is now down 18.8%, or more than $76 per share, in February, declining almost 32% from its all-time closing high of $479.86 set Dec. 17.
Nobody has been affected more on a gross basis by the Tesla slump than its largest shareholder, Musk, who owns nearly 13% of the company and a further 9% equity award pending legal appeal (Forbes discounts Musk’s 9% bonus by 50% in its valuation to reflect its legal uncertainty).
Big Number
$12.5 billion. That’s how much Musk’s fortune declined during Tuesday’s Tesla slump as the 53-year-old registered his lowest end-of-day net worth since Dec. 10.
Crucial Quote
The Oppenheimer analysts wrote they believe “Musk's political activity has fans in certain circles, but that his public life risks alienating consumers and employees as the Trump administration tests the limits of its power.”
Key Background
Musk’s more than $150 billion estimated Tesla stake is the biggest contributor to his net worth, while his stakes in his private multi-billion-dollar companies SpaceX, X and xAI make up a majority of the rest of his fortune. Tesla stock is still up about 30% since Election Day, though the initial rally has lost steam as the company’s fourth-quarter earnings fell short of Wall Street consensus forecasts and its car sales in Europe and China declined. After donating nearly $290 million toward Trump and other GOP causes ahead of the 2024 election, Musk has played a critical role in the opening weeks of Trump’s second term, most notably heading the DOGE agency aimed at significantly pulling back the federal government’s footprint.
Tangent
Musk submitted a $97.4 billion bid Monday to buy the nonprofit arm of OpenAI, a competitor to his generative artificial intelligence startup, led by rival Sam Altman. Musk’s offer is “a distraction from TSLA's challenges,” wrote Rusch. Musk and Altman cofounded OpenAI in 2015 before a messy breakup over the company’s mission.
Further Reading
Trump Media</a> to the Saudi Arabian influence on <a target="_blank" rel="noopener noreferrer" href=https://www.forbes.com/sites/dereksaul/2025/02/11/elon-musks-now-42-billion-poorer-this-month-as-scrutiny-on-trump-ties-grows/"https://www.forbes.com/sites/dereksaul/2022/07/21/heres-why-the-pga-should-worry-about-doj-probe-experts-say/?sh=165eded69adb%22>golf and what real-life billionaires think of "<a target="_blank" rel="noopener noreferrer" href=https://www.forbes.com/sites/dereksaul/2025/02/11/elon-musks-now-42-billion-poorer-this-month-as-scrutiny-on-trump-ties-grows/"https://www.forbes.com/sites/dereksaul/2023/05/26/succession-prediction-oddsmakers-give-it-to-shiv-but-wall-street-experts-arent-so-sure/?sh=175f12fb6143%22>Succession.%22 Send tips to dsaul@forbes.com. Follow Saul for analysis on the biggest daily economic and stock market happenings, ranging from inflation data to tech earnings to deep-dives on hot button assets. </p>">
