Former President Donald Trump announced new tariffs targeting 14 nations, including Japan and South Korea, marking a significant impact on the US stock market. Amidst ongoing disputes with Trump and his announcement of forming a new political party, the world’s richest man, Elon Musk, has been facing continuous financial upheaval. Just within the last 24 hours, Tesla's stock crash has cost him an astounding $15.3 billion (over ₹1.31 lakh crore). Over recent days, Musk's net worth consistently shows a downward trend.
Trump Introduces the Big Beautiful Bill; Musk Eyes New Party
The longstanding friction between Elon Musk, the owner of Tesla and SpaceX, and former US President Donald Trump is once again in the spotlight. Recently, on America's 249th Independence Day, Trump rolled out the 'Big Beautiful Bill', facing criticism from Musk himself, who is no longer affiliated with DOGE. Trump claims that the elimination of tax benefits on EV purchases, included in this bill, is troubling Musk. In response, Musk stirred the waters by announcing a new political entity termed 'America Party'.
Musk Suffers Significant Losses in 2025
Despite the ongoing skirmish with Trump, Elon Musk continues to face substantial financial losses, further diminishing his wealth. According to the Bloomberg Billionaires Index, Musk's fortune shrank by $15.3 billion in just 24 hours, reducing his net worth to $346 billion. This brings his cumulative losses for the year 2025 to $86.7 billion.
Tesla Stock Crash Affects Net Worth
The decline in Musk's net worth is attributed to shifting sentiments among Tesla investors, particularly after his political aspirations came to light. Some investors are skeptical about Musk's ability to maintain business focus amidst his political ventures. The wobble in investor sentiment directly affected Tesla's shares, with the stock plummeting by 7% during the latest trading session. Tesla's opening price was $291.37, falling to $288.77. Over the past six months, Tesla has seen a nearly 26% slide in stock value.
Decline in US Market
Coinciding with Tesla's stock drop, the US stock market also tumbled sharply due to Trump’s newly imposed tariffs affecting 14 nations. The Dow Jones Industrial Average fell by 422.17 points to 44,406.36, while the S&P 500 Index dropped 49.37 points to close at 6,229.98. The Nasdaq also experienced a steep decline, closing at 20,412.52 after falling 188.59 points.
