Key Points
- Elon Musk’s net worth dropped by as much as $15 billion in the days following his announcement of the new “America Party” and a public feud with President Donald Trump.
- Tesla shares plunged nearly 7%, intensifying investor concerns about Musk’s political ambitions and the impact of new U.S. trade tariffs.
- The U.S. government’s new trade bill, supported by Trump, imposed tariffs and removed EV tax credits, directly affecting Tesla’s business model.
- Since January 2025, Musk’s fortune has fallen by over $86 billion, with Tesla’s stock down more than 25% in the past six months.
New Delhi: Elon Musk, the world’s richest man, has suffered a dramatic decline in his net worth, losing up to $15 billion in the wake of Tesla’s stock nosedive and escalating political tensions in the U.S.. The drop was triggered by a combination of factors: Musk’s high-profile entry into American politics with the launch of the “America Party,” and President Donald Trump’s new trade policy that slaps tariffs on foreign goods and eliminates electric vehicle (EV) tax credits both moves with direct implications for Tesla and its investors.
Tesla Stock Tumbles on Political Uncertainty
Tesla shares fell nearly 7% in a single trading session, closing at $295.88, as investors reacted to Musk’s political ambitions and the uncertainty surrounding his ability to focus on business. The company’s stock has now shed more than 25% over the past six months, reflecting broader concerns about EV demand, regulatory headwinds, and Musk’s increasingly public disputes with political leaders.
| Date | Tesla Closing Price | % Change (1 day) | 6-Month Change |
|---|---|---|---|
| Jan 2025 | ~$400 | — | — |
| July 9, 2025 | $295.88 | -6.8% | -26% |
The “Big Beautiful Bill”: Tariffs and EV Tax Credit Repeal
The U.S. Senate’s passage of the so-called “Big Beautiful Bill,” championed by Trump, introduced sweeping new tariffs on imports from countries like Japan and South Korea, and revoked federal tax benefits for electric vehicles. Musk, whose Tesla empire relies heavily on these incentives, openly opposed the move and warned of its negative consequences for American innovation and consumers. The bill’s immediate aftermath saw not just Tesla, but the broader U.S. stock market, take a hit.
Musk’s America Party: Investor Anxiety Grows
Musk’s announcement of the “America Party” further rattled markets. Investors questioned whether Musk could maintain his focus on Tesla and SpaceX while launching a new political movement aimed at disrupting the two-party system. The uncertainty led to a selloff in Tesla shares, amplifying Musk’s personal wealth losses.
Net Worth in Freefall
According to Bloomberg and other financial trackers, Musk’s net worth has plunged from a peak of around $439–$486 billion in late 2024 to between $298 and $367 billion as of July 2025 a loss of over $86 billion year-to-date. The volatility underscores how closely Musk’s fortune is tied to Tesla’s stock price and broader market sentiment.
The Trump-Musk Conflict: What’s Next?
The public feud between Musk and Trump has become a defining factor in both men’s fortunes. Trump’s threats to cut off federal contracts and tax breaks for Musk’s companies have added to the uncertainty. Meanwhile, Musk’s foray into politics is seen as both a risk and a bold gambit, with analysts divided on whether it will ultimately strengthen or weaken his business empire.
Elon Musk’s recent wealth plunge highlights the volatility of tying personal fortunes to high-profile companies and political battles. With Tesla’s stock under pressure, new U.S. tariffs in play, and Musk’s political ambitions raising fresh questions, the coming months will be crucial for both his business interests and his standing as the world’s richest individual.
