Elon Musk, the world’s richest individual, experienced a significant setback in his personal fortune after Tesla stock plunged approximately 7% on Monday, erasing roughly $15 billion from his net worth. The sharp decline coincided with Musk’s announcement of a new political movement, the “America Party,” over the weekend.
Market analysts say this sell-off reflects mounting investor unease as Musk increasingly mixes politics with his business interests. Tesla’s shares closed nearly 7% lower—dropping more than $21 per share—resulting in a staggering loss of over $68 billion in market capitalization in just one day. As a result, Musk’s stake in Tesla declined by approximately $15 billion, according to the Billionaires Index .
The roots of investor anxiety stretch back months. Tesla stock has fallen by about 31% since the spring inauguration of former President Donald Trump—who Musk supported with over $270 million in donations during the 2024 campaign. Analysts highlight that Musk’s forays into government and politics are unsettling shareholders, especially as Tesla grapples with corporate challenges such as two consecutive quarters of declining vehicle deliveries—the weakest performance since 2022.
Financial institutions have responded to this environment. Wedbush Securities’ Dan Ives described Musk’s political pivot as “exactly the opposite direction that Tesla investors/shareholders want him to take”. Similarly, William Blair downgraded Tesla’s stock from “buy” to “hold,” citing rising regulatory concerns—particularly Trump’s proposed elimination of EV tax credits. Analysts noted that such uncertainty is impeding Tesla’s core operational focus, including its much-anticipated robotaxi initiative.
Investor sentiment toward Musk has soured broadly. Public opinion polling indicates that 55% of Americans now hold an unfavorable view of him, up from 45% at the end of 2024. Even supporters across party lines show growing concern. This mounting backlash, coupled with political risk, appears to have introduced a sense of exhaustion in capital markets, prompting investors to wake up to the reality that Musk’s distractions may be weighing heavily on Tesla’s prospects .
Some industry observers say Musk’s potential departure from day-to-day management might benefit Tesla. Philip Bell, CEO of Tower K Group and a Tesla investor, argued that removing “founder risk” and entrusting the firm to its internal talent pool could ultimately benefit the automaker.
Despite these headwinds and $15 billion loss, Musk remains firmly atop the billionaire rankings and leads in wealth. Nevertheless, the recent stock plunge underscores how intertwined his personal brand and political ambitions have become with Tesla’s valuation. The juxtaposition of mounting regulatory threats, wavering investor trust, and disappointing delivery figures further complicates Musk’s challenge to balance his political aspirations with maintaining Tesla’s market dominance.
As Tesla navigates this turbulence, the company must confront investor concerns head-on. And while Musk continues to shape national discourse, the long-term implications for Tesla’s operations and valuation remain uncertain—a dynamic that shareholders and analysts will be watching closely in the weeks ahead.
