Elon Musk's net worth dropped by $22B
What's the story
Tesla CEO Elon Musk saw his net worth plummet by $22.2 billion, his fourth-largest single-day loss. The dip was largely attributed to jittery stock markets responding to possible tariffs and continued federal cost-cutting. Tesla's shares also took a hit in New York, falling by 8.4% and pushing its market value below the $1 trillion mark for the first time since November 7.
Sales impact
European sales slump contributes to wealth decline
Tesla, which makes up more than half of Musk's wealth, has been hit hard with a reported 50% drop in its European sales in January. The decline comes at a time when Musk's popularity has been waning due to his foray into domestic politics. The S&P 500 Index also fell 3.1% over the last four trading days, while the Magnificent 7 Index tracking seven mega-cap tech companies slipped into correction territory on Tuesday.
Wealth comparison
Musk's net worth still higher post-Trump's election victory
Despite the drop, Musk's net worth remains at $358 billion, nearly $100 billion more than when Donald Trump won the election in November. According to the Bloomberg Billionaires Index, record-high funding rounds for his private companies and a strong Tesla rally, which saw it hit a record before its recent sell-off, helped Musk's net worth hit an all-time high of $486.4 billion on December 17.
Government efficiency
Musk's cost-cutting efforts and market reactions
Musk has led the charge to cut government spending through the Department of Government Efficiency. Per its website, the department has saved an estimated $65 billion, or just under 1% of the 2024 federal budget. However, the measures have sparked controversy in Washington, prompting several lawsuits and leaving federal employees unsure about their jobs.