Being a CEO with strong political views can be a double-edged sword, and Elon Musk’s approach has certainly proven this. His vocal stance on issues such as government regulations, free speech, and labor policies has garnered both praise and considerable criticism. However, his political actions have also taken a toll on Tesla, with shareholders increasingly expressing concern. As a result, the company has faced one of its most significant financial setbacks.
Data from Altindex.com reveals that Tesla’s stock slump has resulted in a staggering $500 billion loss in market value, which is roughly equivalent to the combined market caps of Toyota, BYD, Ferrari, and Mercedes-Benz.
Tesla’s Second-Worst Stock Crash Since 2022
2024 began on a rocky note for Tesla, as the company struggled with slower growth projections, price reductions in key markets like China, and intensifying competition from other electric vehicle manufacturers. Despite these challenges, the world’s leading electric car producer, Tesla (TSLA), managed a notable recovery.
In November, the company hit the one-trillion-dollar mark for the first time, a huge milestone driven mainly by Elon Musk`s engagement in Donald Trump’s election campaigns, his endorsement of business-friendly policies, and a record $250 million donation, making him the election’s biggest donor.
While the company’s stock value continued soaring in the weeks after Trump’s election victory, the rally didn’t last, with TSLA stocks being on a steady downward slope for nearly three months. Since peaking at $1.42 trillion on December 17, Tesla’s stock value has dropped almost 40%, with losses accelerating after the inauguration and Musk’s increasingly disruptive presence in the new administration.
At the time of writing, Tesla`s stock value amounted to $904 billion, marking a staggering $513 billion drop in just 75 days. To put that into perspective, in just two and a half months, the company has lost an amount equal to the combined market caps of Toyota, BYD, Ferrari, and Mercedes-Benz.
Moreover, statistics show this is the second-largest two-month stock collapse Tesla has seen in its history, trailing only the 2022 crash. Between October and December of that year, the company`s market cap nosedived by over 50%, reaching a three-year low of $388 billion amid the tech industry crisis.
Musk`s Fortune Shrinks by $123 Billion Since Mid-December
This stock slump hasn’t just hit Tesla; it’s also taken a massive bite out of Musk’s fortune. As Tesla`s largest shareholder, Musk has seen his net worth plummet by a jaw-dropping $123 billion since mid-December, according to Bloomberg’s Billionaires Index.
Despite this eye-watering loss, Musk remains the wealthiest person on the planet by a considerable margin. Even after the hit, he is still worth $115 billion more than the second-ranked Meta CEO Mark Zuckerberg or Amazon`s Jeff Bezos, worth $236 and $232 billion, respectively.