Elon Musk’s Political Reinvention and Tesla’s Post-Election Performance
Tesla shares and options comprise more than 60% of Elon Musk’s wealth. His net worth has fallen below $400 billion for the first time in two months, largely due to a 27% decline in Tesla Inc.’s stock price. The automaker’s shares hit an all-time high in mid-December, driven by optimism surrounding Musk’s political proximity to President Donald Trump.
According to the Bloomberg Billionaires Index, Musk’s fortune peaked at $486.4 billion on December 17, following Trump’s election. However, Tesla’s worst week since early October—which saw shares plummet by 11% due to weak sales—contributed to the decline. German deliveries dropped 59%, hitting the lowest level since 2021, while China sales declined 11.5%, largely due to competition from BYD Co.
On Monday, Tesla shares fell for the fourth consecutive day, dropping 3% to $350.73 in New York trading.
Musk’s Washington Focus and Tesla’s EV Challenges
Musk’s political reinvention has been a key driver for Tesla stock post-election. Since Trump’s inauguration, Musk has devoted significant attention to Washington, directing cost-cutting efforts at DOGE, scrutinizing Treasury Department payments, and leading initiatives to reduce the federal workforce by offering extended severance packages.
Despite investor optimism, policy changes favoring electric vehicle (EV) tax subsidies and self-driving technology standards have yet to materialize under the Trump administration. Analysts Ben Kallo and Davis Sunderland of Robert W. Baird noted in a February 4 report that Musk has consistently called full self-driving autonomy “the true value” of Tesla. However, the firm is now more cautious on Tesla’s robotaxi business, especially after Tesla removed volume guidance in its fourth-quarter earnings report.
SpaceX and OpenAI: Musk’s Expanding Portfolio
Although Musk’s Tesla stake remains the largest contributor to his $394.6 billion net worth, its recent decline has been offset by record funding rounds for his other ventures, including xAI and SpaceX. His 42% stake in SpaceX is currently valued at $136 billion, matching Tesla’s closing market value.
Adding to his business ventures, Musk is leading a consortium of investors making an unsolicited bid to acquire OpenAI—the firm behind ChatGPT—for nearly $95 billion. The Wall Street Journal reported that Musk’s attorney, Marc Toberoff, spearheaded the offer. However, OpenAI’s CEO Sam Altman quickly rejected it in a post on Musk’s social-media platform, X.
Conclusion
Musk’s wealth remains dynamic, reflecting the performance of Tesla, SpaceX, and his AI investments. While Tesla’s recent struggles have dented his fortune, his strategic shifts toward AI and space technology suggest a diversification strategy that could shape his financial trajectory in the coming years.
