US billionaire and Tesla owner Alan Musk’s wealth is steadily declining. His total net worth has come down to $ 400 billion for the first time in two months. Musk’s wealth was rapidly bounced after Donald Trump won the presidential election. But, now the opposite is being reversed. Let us know what is the reason for the decline in Musk’s property.
Musk is not of any use to be close to Trump
The US presidential election results came on 5 November 2024. After that Tesla’s shares saw a strong rise. By mid -December, Tesla shares reached their highest level till date. At that time, investors hoped that Musk and US President Donald Trump’s good relations would prove beneficial for the company. However, Tesla’s shares have fallen by 27 per cent since then. More than 60 per cent of Musk’s assets are associated with Tesla’s shares and options. This is the reason that the impact of the decline in Tesla’s shares is visible on Musk’s net worth.
Why the net worth is decreasing?
Electric vehicle maker Tesla’s shares are seeing a steady decline.
Sales in Germany decreased by 59 per cent and at the lowest level since 2021.
Sales in China were reduced by 11.5 per cent, where Tesla is getting a tough competition from companies like BYD.
The last week was the worst for Tesla, when her shares fell by 11 per cent.
The decline continued for the fourth consecutive day on Monday and the stock fell 3 per cent to close at $ 350.73.
Musk’s political influence on Tesla
Musk has strengthened its relations with the Trump administration. It was expected that electric vehicle tax subsidy and self-driving technology would be made in favor of Tesla. But this has not happened yet. Musk described full self-driving technology as Tesla’s real heritage, but the trust of investors now seems to be weakening. Tesla also removed the volume guidance in its fourth quarter results, which further increased the concerns of the investors.
Focus on SpaceX and Openai Deal
Musk’s stake in Tesla remains the largest part of his total assets, but Tesla’s contribution is decreasing due to increasing investment in companies such as SpaceX and XAI. Musk’s 42 per cent stake in SpaceX has reached $ 136 billion. He also owns the social media platform X (first Twitter).
Musk has also offered 95 billion to purchase Openai, which makes a chat GPT. However, Openai’s CEO Sam Altman has rejected his offer. On the contrary, Altman has offered Musk that if he wants to sell X, he can buy it.