Elon Musk Is Officially $116 Billion Poorer Than His Peak—As Tesla Stock Pulls Back More Than 40%

Forbes - Mar 4th, 2025
Open on Forbes

Elon Musk, the world's wealthiest individual, experienced a significant reduction in his net worth due to a downturn in the stock market, which adversely affected Tesla shares. Tesla, led by Musk, has been notably impacted by global tariffs, given its reliance on international markets like China and imports from Canada for its manufacturing operations. Despite these challenges, Tesla's stock appreciated by 10% since Election Day, although this is a modest gain compared to its previous 91% rally. The company's initial post-election surge was fueled by expectations that Musk's substantial political donations might lead to regulatory advantages.

The broader context highlights the vulnerabilities of Tesla's business model, which depends heavily on international supply chains and market access. The recent stock market losses underscore the volatility and risks associated with Tesla's global strategy, particularly in light of trade tensions and tariff policies. Musk's wealth, despite the losses, remains substantial, with gains from other ventures like SpaceX and xAI cushioning the blow. This situation points to the interconnected nature of global trade policies, corporate strategies, and individual fortunes, emphasizing the complex dynamics between politics, economics, and business.

Story submitted by Fairstory

RATING

5.0
Moderately Fair
Read with skepticism

The article provides a timely and engaging overview of Elon Musk's financial situation and Tesla's stock performance. It effectively captures reader interest through dramatic comparisons and straightforward language. However, the story suffers from a lack of accuracy and transparency, as it fails to cite reliable sources or provide sufficient context for its claims. This affects its credibility and limits its potential impact beyond sparking public discourse. To improve its quality, the article would benefit from more balanced perspectives, verified data, and detailed explanations of the issues discussed. Despite these shortcomings, it remains relevant to public interest due to the high-profile nature of its subjects.

RATING DETAILS

6
Accuracy

The story contains several factual claims that require verification, such as the assertion that Elon Musk lost $116 billion due to Tesla's stock slump. While the general trend of Musk's wealth being impacted by Tesla's performance is plausible, the exact figures need corroboration from reliable financial indexes like Bloomberg or Forbes. Additionally, the claim about Musk's role as the head of President Trump's cost-cutting efforts is dubious and lacks context or credible sourcing. The comparison of Musk's wealth with that of Steve Ballmer and Mukesh Ambani also requires verification against up-to-date net worth data. Overall, while the article presents likely scenarios, it lacks precise source backing for specific figures and roles, affecting its accuracy.

5
Balance

The article primarily focuses on the financial impact on Elon Musk and Tesla's stock performance, with little exploration of broader market conditions or other factors that might influence Tesla's valuation. It presents Musk's financial loss in a dramatic context, comparing it to other billionaires' net worths, which may skew the reader's perception towards sensationalism. The piece does not provide counterbalancing perspectives, such as potential recovery strategies by Tesla or the overall market trends affecting other automakers, leading to a somewhat skewed portrayal of the situation.

7
Clarity

The article is relatively clear in its presentation of information, with a straightforward narrative structure that makes it easy to follow. The language is accessible, and the story maintains a consistent tone throughout. However, the lack of detailed explanations or context for certain claims, such as the specifics of Tesla's sensitivity to tariffs, may leave readers with unanswered questions. The article could benefit from additional context to enhance understanding, but overall, it is presented in a readable and comprehensible manner.

4
Source quality

The article lacks explicit sourcing, relying on general statements and comparisons without citing specific financial reports or expert analyses. This absence of source attribution undermines the credibility of the claims made, particularly regarding exact financial figures and roles, like Musk's involvement with the Trump administration. The story would benefit from direct references to authoritative sources such as financial databases, official company statements, or interviews with market analysts to bolster its reliability.

3
Transparency

The article does not provide transparency about its sources or the methodology behind its claims, such as how Musk's financial loss was calculated or the basis for the comparisons made with other billionaires. There is no disclosure of potential conflicts of interest or the context in which certain claims, like Musk's role with Trump, are made. This lack of transparency makes it difficult for readers to assess the validity of the information presented and understand the underlying assumptions driving the narrative.

Sources

  1. https://en.wikipedia.org/wiki/Wealth_of_Elon_Musk
  2. https://economictimes.com/markets/stocks/news/elon-musks-net-worth-bleeds-83-billion-in-2025-is-teslas-golden-era-crumbling/articleshow/118606672.cms
  3. https://economictimes.indiatimes.com/news/international/global-trends/us-news-elon-musk-lost-rs-7-lakh-crore-in-just-2-months-of-2025-but-is-still-the-worlds-richest-man-tesla-spacex-x-corp-heres-why/articleshow/118713363.cms
  4. https://en.wikipedia.org/wiki/Elon_Musk
  5. https://en.wikipedia.org/wiki/The_World's_Billionaires