The net value of Elon Musk has decreased since Donald Trump took office
Elon Musk, CEO of Tesla and Spacex, has witnessed a significant decrease in his net wealth after the opening of President Donald Trump. This decline is primarily due to the recent political changes that affected its commercial projects.
Newsweek Contact Elon Musk via Tesla to comment via email.
Why do it matter
As the richest person in the world, MUSK’s financial movements are closely monitored. His recent appointment to the leadership of the Ministry of Governmental efficiency (DOGE) under the Trump administration increases its impact on both businesses and politics.
However, the new definitions of the administration have introduced challenges that can significantly affect musk institutions and personal wealth. Modern data indicates that Tesla shares have decreased by 5.2 percent on Monday, a decrease attributed to the recent Trump administration attempts to implement definitions on imports from Canada, Mexico and China.
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What do you know
This decrease comes after a period of great growth, as his clear wealth increased from 262 billion dollars before the 2024 elections to its peak of $ 486 billion on December 18, according to what he said. Bloomberg billionaires indexAmazing increase of 224 billion dollars.
However, Musk’s net value has decreased $ 43 billion since Trump’s inauguration. Tesla shares faced great fluctuations this year, which contributed to the recent decline in his net wealth. The net value of Musk witnessed a significant decrease this week, as Tesla fell by 5.2 percent on Monday.
Before this decrease, its net wealth amounted to about $ 433 billion, according to the Bloomberg billionaires. The shares’ decrease in raising his net wealth by about 14.9 billion dollars helped to 418 billion dollars on Monday, but since then he has recovered to about 424 billion dollars on Tuesday.
The immediate reason for this recent financial setback was Trump’s announcement of the new definitions targeting imports from Canada, Mexico and China. While the customs tariffs were suspended on Canada and Mexico for 30 days after negotiations, the tariff entered 10 percent on the goods from China, as planned. These measures have raised concerns about increasing production costs for companies such as Tesla, which depend on the global supply chain of critical materials such as aluminum and lehium used in electric vehicle batteries.
Investors are particularly concerned about the possibility of a retaliatory tariff from China, an important market for Tesla. Any counter -measures can negatively affect Tesla operations in the region, including Shanghai Gigavactor, and may lead to low sales. This contributed to the uncertainty in the declining pressure on Tesla shares.
Although Spacex is particularly enjoys and is not subject to the same market fluctuations as Tesla, there are fears that new definitions can increase the costs of the basic imported components of their projects, such as Starlink Satellite. This can indirectly affect the company’s evaluation and the net value of musk. In addition, Starlink faces challenges in Africa, including organizational obstacles, capacity and competition issues of local communications operators.
Analysts suggest that the decrease in Tesla shares reflects the wider market fears about the long -term economic effects of new trade policies. The definitions are expected to press profit margins and disrupt supply chains, making companies like Tesla less attractive to investors in the short term.
What people say
“The Financial Director of Tesla, in Tesla, said Q4 2024 profit call: “There is a lot of uncertainty about the definitions. Over the years, we tried to localize our supply chain in every market, but we still rely heavily on parts of all over the world for all our businesses. This is very likely, it will have an impact on our business and profit. “
What happens after that
With the recent Trump administration imposed definitions on China and the threats of customs tariffs of Canada and Mexico, Tesla may need to explore alternative supply chain strategies to mitigate the increasing costs. In addition, the proposed cancellation of the Trump administration of the Federal Tax Standard of $ 7500 for electric cars, plans to reduce emissions and investigations in full self -driving technology in Tesla can affect musk companies and more net value.