Elon Musk’s net worth dips by $14 billion after Tesla shares drop 7%: Here's why

Elon Musk's net worth fell by $14 billion as Tesla stock dropped.

Updated on: Jul 7, 2025, 23:46:53 IST

By HT US Desk

Prefer HTon Google

Share via

Copy link

Elon Musk's wealth dropped by $14 billion on Monday, and Tesla shares decreased by 7 per cent, after he revealed a new political organization - the America Party. As reported by Forbes, this significant decline indicates investor discomfort regarding Musk's increasing political engagement, particularly his recent clashes with US President Donald Trump. Although Musk continues to possess the world's largest wealth at $393 billion, his recent actions are unsettling both markets and investors.

Elon Musk's wealth fell by $14 billion, and Tesla shares dropped 7% after he announced the America Party. (Photo by Allison ROBBERT / AFP) (AFP)

Also read: 'Ridiculous', 'gone off the rails': Trump after Musk floats America Party

Tesla investors growing impatient?

Analysts on Wall Street were quite candid. Jed Dorsheimer of William Blair downgraded Tesla from “buy” to “hold,” pointing to Elon Musk’s political distractions and a more challenging regulatory climate for electric vehicles following Trump’s new tax bill. Even longtime Tesla advocate Dan Ives from Wedbush cautioned that Musk's move towards Beltway politics is “contrary” to the direction Tesla investors want, Forbes reported.

Since Trump's inauguration, Tesla shares have dropped 31 per cent, whereas the overall S&P 500 has risen by 4 per cent during that time. The trend shows increasing worry regarding the SpaceX head’s emphasis on political drama rather than company results.

Also Read: Trump blasted over ‘four-word’ bizarre response on Fed cuts as Texas flood death toll rises; ‘His ears don’t hear truth’

Changes in public sentiment and decline in Tesla’s sales

Elon Musk's approval ratings are also declining. A Silver Bulletin poll average indicates that 55 per cent of Americans currently have an unfavorable view of Musk, an increase from 45 per cent six months prior. Sales statistics reflect the mood: The EV maker experienced its largest delivery drops ever in both quarters of 2025 to date. Analysts at J.P. Morgan foresee that it might be the company's least successful delivery year since 2022.

Elon Musk has clashed with President Trump regarding the US President’s ‘Big Beautiful Bill,’ which was passed recently. The industrialist's comments on the legislation led to a war of words with Trump. After Musk announced his America Party, the US President called him “a train wreck” on Truth Social.

FAQs

How much did Elon Musk’s net worth fall by?

The billionaire’s net worth decreased by $14 million.

Is Elon Musk still the richest person on Earth?

Yes, despite his recent financial setback, Musk tops the list of billionaires.

How has Donald Trump reacted to Elon Musk’s political party announcement?

He called the Tesla chief a “train wreck”.

ABOUT THE AUTHOR
HT US Desk
The Hindustan Times US Desk brings you the latest news and developments from across the United States. The team covers everything from breaking news and politics to sports, business, entertainment and stories that are trending across the country. Our coverage includes the White House, Congress, US elections, immigration and visa updates, H-1B, green cards, Social Security, education, jobs, layoffs, the economy, technology and major policy changes. We also closely follow stories that matter to Indian and South Asian communities in the US. The desk covers major US sports, including the NFL, NBA, MLB and NHL, along with player news, injuries, schedules, results and major events. Entertainment coverage includes Hollywood, celebrities, television, streaming, music and pop culture. We also report on breaking developments, major incidents, weather, public safety, court cases and other stories making headlines across the country. When a major policy or news development affects people's everyday lives, the team works to explain what happened, what it means and what readers need to know. Alongside breaking news, the US Desk produces explainers and practical stories on topics such as immigration, Social Security, taxes, education, employment and government programmes. The team also works on science, tech, business and AI stories analyzing the impact they may have on people. The team follows developments throughout the day, keeping an eye on official announcements, public records, reliable news sources and what people are talking about across the US.Read More

Stay updated with US News covering politics, crime, weather, local events, and sports highlights. Get the latest on Donald Trump and American politics along with Horoscope 2026.