Billionaire entrepreneur Elon Musk has suffered a significant financial setback as Tesla's stock price plummeted, leading to a $29 billion decline in his net worth within a single day. According to the Bloomberg Billionaires Index, Musk’s wealth, which stood at $330 billion on Sunday, dropped to $301 billion by Monday evening, marking a 6.7% decline. His fortune, which had peaked at $486 billion in December 2024, has now shrunk by $132 billion since the beginning of this year.
Tesla Stock Takes a Major Hit
The decline in Musk’s wealth is primarily linked to Tesla's struggling stock performance and weakening sales figures. The company has seen a sharp drop in demand, with orders in Germany down by 70% and shipments in China falling by 49%. This downturn has been further aggravated by Musk’s recent appointment as the head of the U.S. Department of Government Efficiency (DOGE), which has drawn his focus away from Tesla’s operations.
Tesla’s stock price tumbled to $222.15 on the Nasdaq on Monday, March 10, registering a 15.43% drop ($40.52 decline per share). This marked Tesla’s largest single-day decline since September 2020, when it plunged 21.1% to $110. The broader U.S. stock market also faced a downturn, with the Nasdaq 100 falling 4% and the S&P 500 losing 3%, amid investor concerns over a potential economic slowdown. The Trump administration’s latest tariff policies have added to market volatility, triggering a widespread selloff.
Despite this sharp decline, Musk remains optimistic about Tesla’s future. Responding to concerns on social media, he reassured investors by saying, "It will be fine in the long term."
Challenges Mount for Musk’s Companies
In addition to Tesla’s struggles, Musk's other ventures—including SpaceX and X (formerly Twitter)—have faced a series of setbacks. His role in the Trump administration has sparked both praise and criticism, while his companies are battling lawsuits and regulatory scrutiny.
On Monday, X experienced a major outage, with thousands of users reporting disruptions via Website DownDetector. Musk attributed the issue to a large-scale cyberattack, stating on X, “There was (still is) a massive cyberattack against X. We get attacked every day, but this was done with a lot of resources. Either a large, coordinated group and/or a country is involved.”
Meanwhile, SpaceX’s ambitious Starship rocket program has encountered failures. The first two launches ended in explosions, with the latest mishap occurring on Thursday, spreading debris over a wide area and disrupting flights. The January test launch also left debris reaching as far as the Turks and Caicos Islands.
However, Musk has downplayed these setbacks. Sharing an image of himself inspecting wreckage from a previous launch failure, he commented, “Today was a minor setback.” He emphasized that progress takes time, adding that the next Starship launch is expected within 4 to 6 weeks.
Musk’s Balancing Act Between Business and Government
Musk has acknowledged the difficulties of managing his businesses while working with the U.S. government. In a recent interview with Fox News, he admitted that juggling responsibilities at Tesla, SpaceX, and X while serving in the Trump administration has been "a challenging balancing act."
Despite these hurdles, Musk remains confident in Tesla’s long-term growth and continues to push forward with his various ventures, even in the face of financial and operational challenges.
