Elon Musk’s position as the world’s richest individual remains unchallenged. However, since mid-December, the fortune of the tech magnate has dwindled by over $100 billion, marking a staggering decrease of approximately 25%. This decline is primarily attributed to a sell-off of shares in Tesla, his renowned electric car manufacturing company, which has intensified in recent weeks.
By the end of Tuesday’s trading session, Tesla’s stock had plummeted by another 8% to $302.80, contributing to a year-to-date drop of 20%. This latest downturn coincided with reports revealing a significant decrease in new Tesla vehicle registrations in Europe, showing a worrying 45% decline compared to the previous year in January. This trend emerged despite a general uptick in the sales growth of electric vehicles across the continent. Similarly, sales in China are also witnessing a downward trajectory.
Speculations have arisen suggesting that European consumers may be reacting negatively to Musk’s active involvement in the Trump administration, potentially disrupting longstanding relationships between Europe and the United States. Some industry analysts believe that investors might simply be capitalizing on the extraordinary gains accrued over the past year, with the stock still maintaining a noteworthy 52% increase over the last 12 months.
Gary Black, the managing partner at The Future Fund investment group, expressed concerns on Tuesday about the possibility of further declines in Tesla’s shares this year, following altered guidance from Tesla’s corporate management regarding delivery projections for 2025.
Musk’s unprecedented and controversial entanglement in American politics – due to his association with President Donald Trump and his purported leadership within the Department of Government Efficiency – has added a new layer of complexity to his already multifaceted roles. Alongside his stewardship of SpaceX, the social media platform X, the xAI artificial intelligence company, and Neuralink, a venture exploring brain-chip implants, Musk continues to navigate various spheres of influence.
Despite these challenges, Tesla investors maintain a high regard for Musk’s capabilities, contributing to the continued value placed on Tesla’s stock. Some investors believe that the recent downward trend in stock prices may not persist in the long term, especially with Tesla planning to introduce a robo-taxi service later this year and unveiling new vehicle models to adapt to evolving consumer preferences. Additionally, the company is set to launch its full-self-driving technology in China, further fueling optimism among investors.
In a recent statement on X, Black emphasized the potential of Tesla’s innovative products, including a new, more affordable vehicle that could potentially expand the company’s market reach, alongside the promise of unsupervised autonomy, all of which are anticipated to drive future sales growth for Tesla.
