Musk, Trump's Closest Ally
Tesla Stock Value Plummets, Wealth Shrinks Rapidly
Leads Government Efficiency Department, Faces Controversy Over Overstepping Authority
The world's richest person, Elon Musk, CEO of Tesla, has seen his wealth shrink by 27% in just two months. Although Musk is classified as a close ally of U.S. President Donald Trump and has been actively engaged in political activities, this involvement is interpreted to have had a negative impact on his assets.
Bloomberg reported on the 11th that Tesla's stock price fell 11% last week, causing Musk's wealth to plummet to $399.6 billion (approximately 573.4 trillion KRW). Musk's assets had reached an all-time high of $486.4 billion (approximately 706.7 trillion KRW) on December 17 last year.
Tesla's shares and options account for 60% of Musk's wealth. However, Tesla's stock price last week dropped the most since early October last year due to disappointing monthly earnings. The poor performance was the result of a sharp decline in sales in Germany and sluggishness in the Chinese market. Consequently, Tesla's stock price fell for four consecutive trading days, closing at $350.73 per share on the 10th.
The rise in Tesla's stock price was largely influenced by Musk's role as a key figure in the second Trump administration. The expectation that regulatory easing necessary for Tesla would be implemented once President Trump took office helped boost the stock price. However, excessive political activities are now being analyzed as having an adverse effect.
He has led the Government Efficiency Department (DOGE), a newly established advisory body in the second Trump administration, and has spearheaded efforts to dismantle the U.S. Agency for International Development (USAID) and reduce federal government personnel. During this process, he was embroiled in controversies over overstepping his authority.
His apparent support for far-right parties in Europe has also sparked controversy. Regarding the sharp drop in Tesla's new car registrations in Germany last month, Bloomberg analyzed that it was "the result of Musk's more active political involvement in Germany than ever before."
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