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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.
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.
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.
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”.
