Summary
- Elon Musk maintains his position as the world's richest person despite losing $52 billion in net worth due to Tesla's stock decline.
- Tesla's market capitalization fell below $1 trillion, and the sharp decline in European market sales is reportedly linked to Musk's political moves.
- Tesla's poor sales are attributed to competition with BYD in China and slowing electric vehicle demand in the US.
Elon Musk, CEO of Tesla, remains the world's wealthiest person despite losing $52 billion in net worth this year due to Tesla's stock decline.
On the 25th (local time), CNN reported that according to the Bloomberg Billionaires Index, while Musk's net worth decreased by $5.2 billion last week and plummeted by $52 billion since the beginning of the year, he maintains a commanding lead as the world's richest person. Musk's total net worth stands at $380 billion, which is $144 billion more than Mark Zuckerberg, Meta's CEO, who ranks second.
Musk's wealth reduction is attributed to Tesla's sharp stock decline. Tesla's stock has fallen more than 20% in the past month and dropped 8% in a single day (25th). Tesla's market capitalization fell below $1 trillion for the first time since November last year.
Poor sales in the European market are also negatively affecting Tesla. According to the European Automobile Manufacturers Association, Tesla's sales are showing unprecedented decline, and while electric vehicles remain popular in Europe, Tesla's sales nearly halved last month. Analysis suggests this is not unrelated to Musk's political moves. By expressing support for far-right parties in Germany and the UK, Musk has reportedly sparked antipathy towards Tesla in Europe. Additionally, intensifying competition with BYD in China and slowing electric vehicle demand growth in the US are cited as reasons for Tesla's poor sales.
Musk, Tesla's largest shareholder, saw his net worth increase by $83 billion since the US presidential election last November. As Musk's influence grew under Trump's second term, investors anticipated regulatory easing that would benefit Tesla. Tesla's stock surged, and the value of his other companies including SpaceX, Neuralink, xAI, and The Boring Company also increased. Musk oversees the Department of Government Efficiency (DOGE) and has implemented significant job cuts and restructuring, including thousands of layoffs in the federal government.
Reporter Youngsun Cho cho0sun@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
